Bankruptcy and Debt Advice (Scotland) Bill and Debt... · 2 Bankruptcy and Debt Advice (Scotland) Bill 2 Financial education for debtor After section 43A of the 1985 Act, insert—

SP Bill 34B Session 4 (2014)

Bankruptcy and Debt Advice (Scotland) Bill [AS PASSED]

CONTENTS Section

Advice and education

1 Sequestration of estate of living debtor: money advice

2 Financial education for debtor

Payments by debtor following sequestration

3 Debtor’s contribution: common financial tool

4 Debtor contribution order

Sequestration where debtor has few assets

5 Debtor application

6 Circumstances where Accountant in Bankruptcy appointed as trustee

7 Discharge, conditions etc.

Moratorium on diligence

8 Moratorium on diligence

Application for sequestration

9 Statement of undertakings

10 Debtor application: incomplete or inappropriate application

11 Sequestration: application by executor

12 Concurrent proceedings for sequestration: recall

Administration of estate

12A Debtor’s bank account

13 Submission of claims to trustee

14 First accounting period

15 Vesting of estate after sequestration

Discharge following sequestration

16 Discharge of debtor

17 Repeal of discharge on composition

18 Deferral of discharge where debtor cannot be traced

19 Unclaimed dividends and unapplied balances

20 Assets discovered after trustee discharge: appointment of trustee

Records

21 Register of insolvencies

22 Sederunt book

23 Abolition of certain requirements in relation to Edinburgh Gazette

ii Bankruptcy and Debt Advice (Scotland) Bill

Functions of sheriff and Accountant in Bankruptcy in sequestration

24 Application by trustee for direction on matters in sequestration

25 Recall of sequestration by sheriff

26 Recall of sequestration by Accountant in Bankruptcy

27 Appointment of replacement trustee

28 Replacement of trustee acting in more than one sequestration

29 Removal of trustee and trustee not acting

29A Removal of commissioner

30 Contractual powers of trustee

31 Bankruptcy restrictions order

32 Conversion of protected trust deed into sequestration

33 Power to cure defects in procedure

34 Regulations: applications to Accountant in Bankruptcy etc.

35 Valuation of debts depending on contingency

Review of decisions made by Accountant in Bankruptcy

36 Review of decisions about interim trustee

37 Review of decision not to award sequestration

38 Review of decisions about replacement trustee

39 Review of decisions about adjudication of creditor’s claims

40 Review of decision about discharge of trustee

40A Appeals against decisions on review

Miscellaneous amendments

40B Representation of Accountant in Bankruptcy in sheriff court

41 Failure to send statements of assets and liabilities

42 Time limits for sequestration of limited partnership

43 Petition for sequestration by trustee under trust deed

44 Effect of sequestration: renewal of period of inhibition etc.

45 Division and sale of debtor’s family home

46 Effect of discharge of debtor

47 Offence of obtaining credit: increase in amount

48 Bankruptcy restrictions undertaking: repeal

48A Debt arrangement schemes: extension to non-natural persons and fees

General

49 Meaning of “the 1985 Act”

50 Ancillary provision

51 Minor and consequential amendments and repeals

52 Commencement

53 Short title

__________

Schedule 1 —Schedule A1 to the 1985 Act

Schedule 2 —Information to be included in the sederunt book

Schedule 3 —Minor and consequential amendments

Schedule 4 —Repeals

Bankruptcy and Debt Advice (Scotland) Bill 1


Amendments to the Bill since the previous version are indicated by sidelining in the right

margin. Wherever possible, provisions that were in the Bill as introduced retain the original

numbering.

Bankruptcy and Debt Advice (Scotland) Bill

[AS PASSED]

An Act of the Scottish Parliament to amend the Bankruptcy (Scotland) Act 1985; and for

connected purposes.

Advice and education

1 Sequestration of estate of living debtor: money advice

(1) In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor)— 5

(a) in subsection (2B), after paragraph (b), insert—

“(ba) the debtor has obtained the advice of a money adviser in accordance with

section 5C(1),”, and

(b) after subsection (4B), insert—

“(4BA) A debtor application must— 10

(a) include a declaration by the money adviser who provided the advice

referred to in section 5C(1) that such advice has been given, and

(b) specify the name and address of the money adviser.”.

(2) After section 5B of the 1985 Act, insert—

“5C Money advice 15

(1) An application for the sequestration of a living debtor’s estate may not be made

unless the debtor has obtained from a money adviser—

(a) advice on the debtor’s financial circumstances,

(b) advice on the effect of the proposed sequestration of the debtor’s estate,

(c) advice on the preparation of the application, and 20

(d) advice on such other matters as may be prescribed.

(2) In this Act, “money adviser” means a person who—

(a) is not an associate of the debtor, and

(b) is of a prescribed description or falls within a prescribed class.”.

2 Bankruptcy and Debt Advice (Scotland) Bill

2 Financial education for debtor

After section 43A of the 1985 Act, insert—

“43B Financial education

(1) The trustee must notify a living debtor that the debtor is required to undertake a

prescribed course of financial education (a “financial education course”) 5

specified by the trustee if, in the opinion of the trustee—

(a) any of the circumstances mentioned in subsection (2) apply, and

(b) undertaking the course would be appropriate for the debtor.

(2) The circumstances are—

(a) in the period of 5 years ending on the date on which the sequestration of 10

the debtor’s estate was awarded—

(i) the debtor’s estate was sequestrated,

(ii) the debtor granted a protected trust deed,

(iii) an analogous remedy (within the meaning of section 10(7)) was in

force in respect of the debtor, or 15

(iv) the debtor participated in a debt management programme under

which the debtor made regular payments (including in particular a

programme approved in accordance with section 2 of the Debt

Arrangement and Attachment (Scotland) Act 2002 (asp 17)),

(b) the debtor is subject to, or under investigation with a view to an 20

application being made for, a bankruptcy restrictions order,

(c) the trustee considers that the pattern of the debtor’s behaviour, whether

before or after the award of sequestration, is such that the debtor would

benefit from a financial education course,

(d) the debtor agrees to undertake a financial education course. 25

(2A) The trustee must decide whether to issue a notification under subsection (1)—

(a) before the end of the period of 6 months beginning with the date of

award of sequestration, and

(b) in a case where section 54F applies, as soon as reasonably practicable

after the trustee ascertains the whereabouts of the debtor or the debtor 30

makes contact with the trustee.

(3) A debtor must not be required to undertake or, as the case may be, complete

the financial education course specified by the trustee if, in the opinion of the

trustee—

(a) the debtor is unable to participate in the course as a result of the debtor’s 35

health (including by reason of disability or physical or mental illness), or

(b) the debtor has completed a financial education course in the period of 5

years ending on the date on which the sequestration of the debtor’s estate

was awarded.

(4) Regulations under subsection (1) may in particular— 40

(a) prescribe the content, format and method of delivery of a course,

(b) prescribe different courses for different circumstances,


(c) make provision for particular courses to be specified by a trustee where

particular circumstances in subsection (2) apply.”.

Payments by debtor following sequestration

3 Debtor’s contribution: common financial tool

(1) After section 5C of the 1985 Act (inserted by section 1(2)), insert— 5

“5D Assessment of debtor’s contribution

(1) The Scottish Ministers may by regulations specify a method (the “common

financial tool”) to be used to assess an appropriate amount of a living debtor’s

income to be paid to a trustee after the sequestration of the debtor’s estate (the

“debtor’s contribution”). 10

(2) Regulations under subsection (1) may in particular—

(a) prescribe a method for assessing a debtor’s financial circumstances

(including the debtor’s assets, income, liabilities and expenditure),

(b) prescribe a method for determining a reasonable amount of expenditure

for a debtor after the sequestration of the debtor’s estate, 15

(c) prescribe the proportion of a debtor’s income that is to constitute the

debtor’s contribution,

(d) prescribe that a method determined by another person is to be used (with

or without modification in accordance with regulations made under

subsection (1)) as the common financial tool. 20

(3) The common financial tool must ensure that the amount of reasonable

expenditure for a debtor is not less than the total amount of any income

received by the debtor by way of guaranteed minimum pension (within the

meaning of the Pension Schemes Act 1993 (c.48)).

(4) The common financial tool must ensure that an amount is allowed for— 25

(a) aliment for the debtor,

(b) the debtor’s relevant obligations.

(5) The “debtor’s relevant obligations” are—

(a) any obligation of aliment owed by the debtor (“obligation of aliment”

having the same meaning as in the Family Law (Scotland) Act 1985 30

(c.37)),

(b) any obligation of the debtor to make a periodical allowance to a former

spouse or former civil partner, and

(c) any obligation of the debtor to pay child support maintenance under the

Child Support Act 1991 (c.48). 35

(6) The amount allowed for the debtor’s relevant obligations referred to in

paragraphs (a) and (b) of subsection (5) need not be sufficient for compliance

with a subsisting order or agreement as regards the aliment or periodical

allowance.”.

(2) In section 7(2) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) 40

(debt payment programmes: power to make further provision), after paragraph (bc)

insert—


“(bd) the method of assessing the amount of a debtor’s assets, income,

liabilities and expenditure in considering applications for the approval, or

the variation, of a debt payment programme,”.

4 Debtor contribution order

After section 32 of the 1985 Act, insert— 5

“32A Debtor contribution order

(1) The Accountant in Bankruptcy must make an order fixing the debtor’s

contribution (a “debtor contribution order”)—

(a) in the case of a debtor application, at the same time as awarding

sequestration of the debtor’s estate, 10

(b) in the case of an award of sequestration following a petition under

section 5(2)(b), after considering initial proposals for the debtor’s

contribution provided by the trustee.

(1A) In a case referred to in subsection (1)(b), the trustee must send initial proposals

for the debtor’s contribution before the end of the period of 6 weeks beginning 15

with the date of award of sequestration.

(2) In making a debtor contribution order, the Accountant in Bankruptcy must use

the common financial tool to assess the debtor’s contribution.

(2A) A debtor contribution order may fix the amount of the debtor’s contribution as

zero. 20

(3) A debtor contribution order may be made irrespective of sections 11 and 12 of

the Welfare Reform and Pensions Act 1999 (c.30).

(4) A debtor contribution order may provide that a third person is to pay to the

trustee a specified proportion of money due to the debtor by way of income.

(5) Where a third person pays a sum of money to the trustee in accordance with 25

subsection (4), the third person is discharged from any liability to the debtor to

the extent of the sum so paid.

(6) The Accountant in Bankruptcy must, immediately following the making of a

debtor contribution order, give written notice of the order to—

(a) the debtor, 30

(b) the trustee, and

(c) any third person mentioned in the order.

(7) A debtor contribution order must not take effect on a date before the expiry of

the period of 14 days beginning with the day of notification of the order.

32B Debtor contribution order: payment period and intervals 35

(1) A debtor contribution order must contain provision requiring the debtor to pay

the debtor’s contribution (if not zero)—

(a) during the payment period, and

(b) at regular intervals determined by the person making or varying the

order. 40


(2) In subsection (1)(a), “payment period” means—

(a) the period of 48 months beginning with the date of the first payment,

(b) such shorter period as is determined by the person making or varying the

order, or

(c) such longer period as is— 5

(i) determined by the trustee where there is a period during which the

debtor did not pay an amount required under the debtor

contribution order, or

(ii) agreed by the debtor and the trustee.

(3) The person making or varying the order may determine a shorter period under 10

subsection (2)(b) only if, in the opinion of that person, the value of—

(a) the debtor’s contribution during the shorter period, and

(b) any other estate of the debtor taken possession of by the trustee,

would be sufficient to allow a distribution of the debtor’s estate to meet in full

all of the debts mentioned in section 51. 15

(4A) The Accountant in Bankruptcy must, when making an order under section

32A—

(a) determine the date of the first payment, or

(b) in a case where the debtor’s contribution is fixed as zero, determine the

date which is to be deemed as the date of the first payment under the 20

order.

32BA Debtor contribution order: review and appeal

(1) The debtor, the trustee or any other interested person may apply to the

Accountant in Bankruptcy for a review of a debtor contribution order made by

the Accountant in Bankruptcy under section 32A. 25

(2) An application under subsection (1) must be made before the expiry of the

period of 14 days beginning with the day on which the debtor contribution

order is made.

(3) If an application under subsection (1) is made, the debtor contribution order is

suspended until the determination of that review by the Accountant in 30

Bankruptcy.

(4) If an application for a review under subsection (1) is made, the Accountant in

Bankruptcy must—

(a) take into account any representations made by an interested person

before the expiry of the period of 21 days beginning with the day on 35

which the application is made, and

(b) confirm, amend or revoke the debtor contribution order before the expiry

of the period of 28 days beginning with the day on which the application

is made.

(5) The trustee or the debtor may appeal to the sheriff against any decision of the 40

Accountant in Bankruptcy under subsection (4)(b) before the expiry of the

period of 14 days beginning with the date of the decision.


32C Effect of debtor contribution order

(1) The debtor must pay to the trustee any debtor’s contribution which is not zero

as—

(a) fixed by the Accountant in Bankruptcy in making the debtor contribution

order, or 5

(b) varied in accordance with section 32E.

(2) The requirement to pay the debtor’s contribution applies irrespective of the

debtor’s discharge.

(3) If the value of the debtor’s estate and income when taken possession of by the

trustee is sufficient to allow a distribution of the debtor’s estate to meet in full 10

all of the debts mentioned in section 51, any debtor contribution order ceases to

have effect.

32D Deductions from debtor’s earnings and other income

(1) Subsections (2) to (6) apply where under a debtor contribution order—

(a) the debtor is required to pay to the trustee an amount from the debtor’s 15

earnings or other income, or

(b) in accordance with section 32A(4), a third person is required to pay to

the trustee money otherwise due to the debtor by way of income.

(2) The debtor must give the person mentioned in subsection (3) an instruction to

make— 20

(a) deductions of specified amounts from the debtor’s earnings or other

income, and

(b) payments to the trustee of the amounts so deducted.

(3) The person mentioned is—

(a) in the case of an amount to be paid from the debtor’s earnings from 25

employment, the person by whom the debtor is employed,

(b) in the case of an amount to be paid from other earnings or income of the

debtor, a third person who is required to pay the earnings or income to

the debtor, and

(c) in the case mentioned in subsection (1)(b), the third person who is 30

required to pay the income to the trustee.

(4) The trustee may give the person mentioned in subsection (3) an instruction of

the type mentioned in subsection (2) if—

(a) the debtor fails to comply with the requirements imposed by that

subsection, and 35

(b) the debtor fails to pay the debtor’s contribution in respect of 2 payment

intervals applying by virtue of the debtor contribution order.

(5) A person mentioned in subsection (3) must comply with an instruction

provided in accordance with subsection (2) or (4).


(6) Where the person by whom the debtor is employed or another third person

pays a sum of money to the trustee in accordance with this section, that person

is discharged from any liability to the debtor to the extent of the sum so paid.

(7) The Scottish Ministers may by regulations make provision about instructions to

be provided under this section, including in particular— 5

(a) the form in which an instruction must be made,

(b) the manner in which an instruction provided in accordance with

subsection (2) or (4) affects the recipient of that instruction, and

(c) the consequence of any failure of a recipient of an instruction provided in

accordance with subsection (2) or (4) to comply with the duty imposed 10

by subsection (5).

32E Variation and removal of debtor contribution order by trustee

(1) The trustee may vary or quash a debtor contribution order—

(a) on the application of the debtor, following any change in the debtor's

circumstances, 15

(b) if the trustee considers it to be appropriate, following any change in the

debtor's circumstances, or

(c) if the trustee considers it to be appropriate when—

(ia) sending a report to the Accountant in Bankruptcy under section

54(4), or 20

(ii) granting a discharge under section 54A(2).

(2) In deciding whether to vary or quash a debtor contribution order, the trustee

must use the common financial tool to assess the debtor’s contribution.

(3) A decision by the trustee under subsection (1)(b) must not take effect on a day

before the end of the period of 14 days beginning with the day on which the 25

decision is made.

(4) The trustee must notify in writing the persons mentioned in subsection (5)

immediately following—

(a) any variation or quashing of a debtor contribution order,

(b) any refusal of an application. 30

(5) The persons are—

(a) the debtor,

(b) the Accountant in Bankruptcy (if the trustee is not the Accountant in

Bankruptcy),

(c) any third person required to make a payment under the debtor 35

contribution order or under section 32D(5), and

(d) any other interested person.

32F Payment break

(1) The trustee may, on the application of the debtor, extend the payment period of

a debtor contribution order by granting a payment break. 40


(2) A “payment break” is a period not exceeding 6 months during which payments

under the debtor contribution order are deferred.

(3) A debtor may apply for a payment break if—

(a) there has been a reduction of at least 50% in the debtor’s disposable

income (as determined using the common financial tool) as a result of 5

any of the circumstances mentioned in subsection (4) arising in relation

to the debtor, and

(b) the debtor has not previously applied for a payment break in relation to a

debtor contribution order applying after the sequestration of the debtor’s

estate. 10


(a) a period of unemployment or change in employment,

(b) a period of leave from employment because of the birth or adoption of a

child or the need to care for a dependant,

(c) a period of illness of the debtor, 15

(d) a divorce or dissolution of civil partnership,

(e) a separation from a person to whom the debtor is married or is the civil

partner,

(f) the death of a person who, along with the debtor, cared for a dependant

of the debtor. 20

(5) An application for a payment break must specify the period during which the

debtor wishes payments to be deferred.

(6) If, in the opinion of the trustee, a payment break is fair and reasonable, the

trustee may grant a payment break on such conditions and for such period as

the trustee thinks fit. 25

(7) The trustee must notify in writing the grant of a payment break to—

(a) the debtor,

(b) the Accountant in Bankruptcy (if the trustee is not the Accountant in

Bankruptcy), and

(c) any third person required to make a payment under the debtor 30

contribution order.

(8) If the trustee decides not to grant a payment break, the trustee must notify the

debtor of that decision and of the reasons.

(9) The payment period in a debtor contribution order is deemed to be varied by

the addition to the period of any payment break granted under this section. 35

32G Sections 32E and 32F: review and appeal

(1) The debtor or any other interested person may apply to the Accountant in

Bankruptcy for a review of a decision by the trustee under section 32E or 32F.


period of 14 days beginning with the day on which the decision is made. 40


(3) If an application under subsection (1) relates to a decision by the trustee under

section 32E(1)(b), the decision is suspended until the determination of that

review by the Accountant in Bankruptcy.


Bankruptcy must— 5


before the expiry of the period of 21 days beginning with the day on


(b) confirm, amend or revoke the decision before the expiry of the period of

28 days beginning with the day on which the application is made. 10

(5) The trustee or the debtor may appeal to the sheriff against any decision of the


period of 14 days beginning with the date of the decision.”.

Sequestration where debtor has few assets

5 Debtor application 15

(1) In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor)—

(a) in subsection (2)(a), after “subsection” insert “(2ZA) or”, and

(b) after subsection (2), insert—

“(2ZA)This subsection applies to the debtor where—

(a) the debtor— 20

(i) has been assessed by the common financial tool as requiring to

make no debtor’s contribution, or

(ii) has been in receipt of a prescribed payment for a period of at least

6 months ending with the day on which the application is made,

(b) the total amount of the debtor’s debts (including interest) at the date the 25

debtor application is made is—

(i) not less than £1500 or such other sum as may be prescribed, and

(ii) no more than £17000 or such other sum as may be prescribed,

(c) the total value of the debtor’s assets (leaving out of account any

liabilities) on the date the debtor application is made does not exceed 30

£2000 or such other amount as may be prescribed,

(d) the value of a single asset of the debtor does not exceed £1000 or such

other amount as may be prescribed,

(e) the debtor does not own land,

(f) within the prescribed period, the debtor has been granted a certificate for 35

sequestration of the debtor’s estate in accordance with section 5B,

(g) in the period of 10 years ending on the day before the day on which the

debtor application is made or such other period as may be prescribed no

award of sequestration has been made against the debtor in pursuance of

an application made by the debtor by virtue of this subsection, and 40


(h) in the period of 5 years ending on the day before the day on which the

debtor application is made no award of sequestration has been made

against the debtor in pursuance of—

(i) an application made by the debtor other than by virtue of this

subsection, or 5

(ii) a petition.

(2ZB) For the purposes of subsection (2ZA)(c) and (d)—

(a) any property of the debtor is not to be regarded as an asset if, under any

provision of this or any other enactment, it would be excluded from

vesting in the Accountant in Bankruptcy as trustee, 10

(b) if the debtor reasonably requires the use of a vehicle, any vehicle owned

by the debtor the value of which does not exceed £3000 or such other

amount as may be prescribed is not to be regarded as an asset,

(c) any other property of the debtor that is of a prescribed type is not to be

regarded as an asset. 15

(2ZC) For the purposes of subsection (2ZA)(c) and (d), the Scottish Ministers may by

regulations make provision about how the value of the debtor’s assets is to be

determined.

(2ZD) The Scottish Ministers may by regulations modify subsection (2ZA).

(2ZE) Schedule A1 to this Act makes further provision about the application of 20

certain provisions of this Act in relation to a debtor to whom subsection (2ZA)

applies.”.

(2) Before Schedule 1 to the 1985 Act, insert the Schedule A1 set out in schedule 1 to this

Act.

6 Circumstances where Accountant in Bankruptcy appointed as trustee 25

In section 2 of the 1985 Act (appointment and functions of trustee in sequestration)—

(a) in subsection (1A), for “(1C)” substitute “(1D)”, and

(b) after subsection (1C) insert—

“(1D) The Accountant in Bankruptcy is not to make an appointment under subsection

(1A) where— 30

(a) the debtor application is made by a debtor to whom section 5(2ZA)

applies, and

(b) the Accountant in Bankruptcy awards sequestration of the debtor’s

estate.”.

7 Discharge, conditions etc. 35

(1) After section 54B of the 1985 Act (inserted by section 16), insert—

“54C Debtor to whom section 5(2ZA) applies: discharge

(1) Where section 5(2ZA) applies to a debtor, the debtor is discharged on the date

which is 6 months after the date on which sequestration is awarded.


(2) A debtor may, following a discharge, apply to the Accountant in Bankruptcy

for a certificate of discharge in the prescribed form.”.

(2) After section 55 of the 1985 Act, insert—

“55A Discharge under section 54C: conditions

(1) This section applies where a debtor is discharged under section 54C. 5

(2) During the relevant period the debtor must comply with the condition in

subsection (3) before the debtor, either alone or jointly with another person,

obtains credit—

(a) to the extent of £2000 (or such other sum as may be prescribed) or more,

or 10

(b) of any amount where, at the time of obtaining credit, the debtor has debts

amounting to £1000 (or such other sum as may be prescribed) or more.

(3) The condition is that the debtor must inform the person who is providing credit

to the debtor (or, as the case may be, jointly to the debtor and another person)

that the debtor is required to comply with the conditions in this section. 15

(4) During the relevant period, the debtor must not engage (whether directly or

indirectly) in a business under a name other than that to which the discharge

relates unless the debtor complies with the condition in subsection (5).

(5) The condition is that the debtor must inform any person with whom the debtor

enters into any business transaction of the name of the business to which the 20

discharge relates.

(6) In this section, “relevant period” means the period of 6 months beginning with

the date of discharge.

55B Section 55A: sanctions

(1) If a debtor fails to comply with the requirement imposed by subsection (2) or 25

(4) of section 55A, that section applies in relation to the debtor as if the

relevant period were the period of 12 months beginning with the date of

discharge of the debtor.

(2) If a debtor fails to comply with the requirement imposed by subsection (2) or

(4) of section 55A during the period when the section applies in relation to the 30

debtor by virtue of subsection (1), the debtor commits an offence.

(3) A debtor who is guilty of an offence under subsection (2) is liable on summary

conviction to—

(a) a fine not exceeding the statutory maximum,

(b) imprisonment for— 35

(i) a term not exceeding 3 months, or

(ii) a term not exceeding 6 months, if the person has previously been

convicted of an offence inferring dishonest appropriation of

property or an attempt at such appropriation, or

(c) both such fine and imprisonment. 40

(4) A debtor who is guilty of an offence under subsection (2) is liable on

conviction on indictment to—


(a) a fine,

(b) imprisonment for a term not exceeding 2 years, or

(c) both such fine and imprisonment.”.

Moratorium on diligence

8 Moratorium on diligence 5

After section 4 of the 1985 Act, insert—

“Moratorium on diligence

4A Notice of intention to apply: debtor application etc.

(1) A person may give written notice to the Accountant in Bankruptcy of the

person’s intention— 10

(a) to make a debtor application for sequestration under section 5,

(b) to seek to fulfil the conditions required in order for a trust deed granted

by or on behalf of that person to be granted the status of protected trust

deed,

(c) to apply for the approval of a debt payment programme in accordance 15

with section 2 of the Debt Arrangement and Attachment (Scotland) Act

2002 (asp 17).

(2) A person may not give a notice if that person has given a notice under

subsection (1) in the immediately preceding period of 12 months.

(3) The Accountant in Bankruptcy must, without delay after receipt of a notice 20

under subsection (1), enter in the registers mentioned in subsection (4)—

(a) the name of the person who gave the notice, and

(b) such other information as the Accountant in Bankruptcy considers

appropriate in relation to that person.

(4) The registers are— 25

(a) the register of insolvencies, and

(b) the register of debt payment programmes established and maintained in

accordance with section 7 of the Debt Arrangement and Attachment

(Scotland) Act 2002 (the “DAS register”).

4B Notice of intention to apply: sequestration of estate under section 6 30

(1) A person may give written notice to the Accountant in Bankruptcy of the

person’s intention to make a debtor application under section 6.

(2) A person may not give a notice in respect of an estate mentioned in section 6 if

any person has given a notice under subsection (1) in respect of the same estate

in the immediately preceding period of 12 months. 35

(3) The Accountant in Bankruptcy must, without delay after receipt of a notice

under subsection (1), enter in the register of insolvencies—

(a) the name of the person who is the subject of the notice, and


(b) such other information as the Accountant in Bankruptcy considers

appropriate in relation to that person.

4C Moratorium on diligence

(1) This section applies where a person gives notice to the Accountant in

Bankruptcy in accordance with section 4A(1) or 4B(1). 5

(2) A moratorium on diligence applies in relation to the person who is the subject

of the notice for the moratorium period determined in accordance with section

4D.

(3) While a moratorium on diligence applies in relation to the person it is not

competent— 10

(a) to serve a charge for payment in respect of any debt owed by the person,

(b) to commence or execute any diligence to enforce payment of any debt

owed by the person,

(c) to found on any debt owed by the person in presenting, or concurring in

the presentation of, a petition for sequestration of the person’s estate, or 15

(d) in the case where an arrestment mentioned in subsection (1) of section

73J of the Debtors (Scotland) Act 1987 (c.18) has been granted in

respect of funds due to the person, to release funds to the creditor under

subsection (2) of that section.

(4) The moratorium period applying in relation to the person is to be disregarded 20

for the purposes of determining the period mentioned in section 73J(3) of the

Debtors (Scotland) Act 1987 (c.18).

(5) Despite subsection (3)(b), it is competent to—

(a) auction an article which has been attached in accordance with the Debt

Arrangement and Attachment (Scotland) Act 2002 (asp 17) where— 25

(i) notice has been given to the debtor under section 27(4) of that Act,

or

(ii) the article has been removed, or notice of removal has been given,

under section 53 of that Act,

(b) implement a decree of furthcoming, 30

(c) implement a decree or order for sale of a ship (or a share of it) or cargo,

(d) execute an earnings arrestment, a current maintenance arrestment or a

conjoined arrestment order which came into effect before the day on

which the moratorium period in relation to the person begins.

4D Period of moratorium 35

(1) The moratorium period applying in relation to the person is the period which—

(a) begins on the day on which an entry is made in the register of

insolvencies under section 4A(3) or 4B(3), and

(b) ends on—

(i) the day which is 6 weeks after that day, 40


(ii) such earlier day as is mentioned in subsection (2), or

(iii) if subsection (3), (5) or (7) applies, such later day as is determined

in accordance with subsection (4), (6) or (8).

(2) The earlier day is the day on which, in relation to the person who is the subject

of the moratorium— 5

(a) an entry is made in the register of insolvencies recording the award of

sequestration of the estate,

(b) an entry is made in the register of insolvencies recording that a trust deed

granted by the person has been granted or refused protected status,

(c) an entry is made in the DAS register recording the approval of a debt 10

payment programme in accordance with section 2 of the Debt

Arrangement and Attachment (Scotland) Act 2002, or

(d) written notice is given to the Accountant in Bankruptcy—

(i) by the person withdrawing the notice given under section 4A(1), or

(ii) by or on behalf of the person withdrawing the notice given under 15

section 4B(1).

(3) This subsection applies if, on the day which is 6 weeks after the day on which

the moratorium began under subsection (1)(a)—

(a) a person has made a debtor application for sequestration of the estate of

the person who is the subject of the moratorium, 20

(b) the moratorium has not ended in accordance with subsection (2)(a), and

(c) no decision has been made by the Accountant in Bankruptcy under

section 15(3C)(b).

(4) Where subsection (3) applies, the moratorium period ends on—

(a) the day on which an entry is made in the register of insolvencies 25

recording the award of sequestration of the estate,

(b) in the case of refusal to award sequestration—

(i) the day of the expiry of the period applying by virtue of section

15(3B) where no application for review is made under section

15(3A), or 30

(ii) the day on which a decision is made by the Accountant in

Bankruptcy under section 15(3C)(b) where an application for

review is made, or

(c) the day on which written notice is given to the Accountant in

Bankruptcy— 35

(i) by the person withdrawing the notice given under section 4A(1), or

(ii) by or on behalf of the person withdrawing the notice given under

section 4B(1).


the moratorium began under subsection (1)(a)— 40


(a) an entry has been made in the register of insolvencies recording an

application for a trust deed granted by or on behalf of the person who is

the subject of the moratorium to be granted the status of protected trust

deed, and

(b) the moratorium has not ended in accordance with subsection (2)(b). 5


(a) the day on which an entry is made in the register of insolvencies

recording that the trust deed granted by or on behalf of the person has

been granted the status of protected trust deed,

(b) where such an entry is not made, the day which is 13 weeks after the day 10

on which the moratorium began under subsection (1)(a), or

(c) the day on which written notice is given to the Accountant in Bankruptcy

by the person withdrawing the notice given under section 4A(1).


the moratorium began under subsection (1)(a)— 15

(a) the person who is the subject of the moratorium has applied for approval

of a debt payment programme under section 2 of the Debt Arrangement

and Attachment (Scotland) Act 2002,

(b) the moratorium has not ended in accordance with subsection (2)(c), and

(c) the application has not been determined. 20


(a) the day on which an entry is made in the DAS register recording the

approval of the debt payment programme in accordance with section 2 of

the Debt Arrangement and Attachment (Scotland) Act 2002,

(b) in the case of a rejection of a debt payment programme, the day on 25

which an entry is made in the DAS register recording the rejection, or

(c) the day on which written notice is given to the Accountant in Bankruptcy

by the person withdrawing the notice given under section 4A(1).”.

Application for sequestration

9 Statement of undertakings 30

(1) In section 2 of the 1985 Act (appointment and functions of the trustee in the

sequestration), after subsection (7), insert—

“(8) The trustee must at the same time as notifying the debtor under subsection

(7)(a) or (b), send to the debtor, for signature by the debtor, a statement of

undertakings in the form prescribed.”. 35


(a) in subsection (2B), after paragraph (ba) (inserted by section 1(1)(a)), insert—

“(bb) the debtor has given a statement of undertakings (including an

undertaking to pay to the trustee after the award of sequestration of the

debtor’s estate an amount determined using the common financial 40

tool),”, and

(b) after subsection (6A), insert—


“(6B) In the case of a debtor application, the debtor must send a statement of

undertakings to the Accountant in Bankruptcy along with the application.”.

10 Debtor application: incomplete or inappropriate application

Before section 12 of the 1985 Act (but after the italic cross-heading immediately

preceding it), insert— 5

“11A Debtor application: incomplete application

(1) This section applies where a debtor application is made and the Accountant in

Bankruptcy considers that—

(a) the application is incomplete,

(b) further information is required in relation to the application, 10

(c) further evidence is required to substantiate any fact relevant to the

application, or

(d) any fee or charge applicable to the application is outstanding.

(2) The Accountant in Bankruptcy must specify by notice in writing to the

debtor— 15

(a) any further information which is to be provided,

(b) any further evidence which is to be provided, and

(c) any fee or charge to be paid.

(3) Any information, evidence, fee or charge to be provided or paid under

subsection (2) must be provided or paid within 21 days or such longer period 20

as may be specified by the Accountant in Bankruptcy.

(4) The Accountant in Bankruptcy may refuse to award sequestration if, after the

expiry of the period referred to in subsection (3), the Accountant in Bankruptcy

considers that—

(a) the application remains incomplete, 25

(b) the debtor has provided insufficient information or evidence under

subsection (2)(a) or (b), or

(c) any fee or charge applicable to the application remains outstanding.

11B Refusal of debtor application: inappropriate application

(1) This section applies where a debtor application is made and the Accountant in 30

Bankruptcy considers that an award of sequestration may not be appropriate in

the circumstances of the case.

(2) The Accountant in Bankruptcy must specify by notice in writing to the

debtor—

(a) the reason why the Accountant in Bankruptcy considers the application 35

may not be appropriate, and

(b) any further information which is to be provided within 21 days or such

longer period as may be specified by the Accountant in Bankruptcy.


(3) The Accountant in Bankruptcy may refuse to award sequestration if, after the

expiry of the period referred to in subsection (2), the Accountant in Bankruptcy

remains of the view that an award of sequestration would be inappropriate in

the circumstances of the case.”.

11 Sequestration: application by executor 5

(1) In section 5 of the 1985 Act (sequestration of the estate of living or deceased debtor), for

subsection (3), substitute—

“(3) The sequestration of the estate of a deceased debtor is—

(a) by debtor application made by the executor, or a person entitled to be

appointed as executor, on the estate, 10

(b) on the petition of a qualified creditor, or qualified creditors, of the

deceased debtor,

(c) on the petition of a temporary administrator,

(d) on the petition of a member State liquidator appointed in main

proceedings, or 15

(e) on the petition of a trustee acting under a trust deed.”.

(2) In section 6B of the 1985 Act (debtor application: provision of information)—

(a) in subsection (1), after “application”, where it first occurs, insert “, other than an

application under section 5(3)(a),”, and

(b) after subsection (2), insert— 20

“(2A) Where a debtor application is made by an executor under section 5(3)(a) the

executor must—

(a) state in the application whether or not the debtor’s centre of main

interests was situated in the United Kingdom or in another member State,

and 25

(b) state in the application whether or not the debtor possessed an

establishment in the United Kingdom or in another member State.”.

(3) In section 8A of the 1985 Act (further provisions relating to debtor applications)—

(a) in subsection (1), for “subsection (2)” substitute “subsections (2) and (2A)”, and


“(2A) Any intromission by an executor with the deceased debtor’s estate after the

period mentioned in subsection (2B) is deemed an intromission without a title

unless, within that period, the executor—

(a) makes a debtor application under section 5(3)(a), or

(b) petitions for the appointment of a judicial factor to administer the estate. 35

(2B) The period referred to in subsection (2A) is the period of 12 months following

the day on which the executor knew or ought to have known that the estate was

absolutely insolvent and likely to remain so.”.

(4) In section 12 of the 1985 Act (when sequestration is awarded)—

(a) in subsection (1) after “application”, where it first occurs, insert “, other than an 40

application under section 5(3)(a),”, and


(b) after that subsection, insert—

“(1B) Where a debtor application is made under section 5(3)(a) the Accountant in

Bankruptcy must award sequestration forthwith if the Accountant is satisfied—

(a) that the application has been made in accordance with the provisions of

this Act and any provision made under this Act, and 5

(b) that the provisions of subsection (6A) of section 5 have been complied

with.”.

12 Concurrent proceedings for sequestration: recall

In section 10A of the 1985 Act (powers in relation to concurrent proceedings for

sequestration or analogous remedy), after subsection (3) insert— 10

“(3A) The Accountant in Bankruptcy must grant a recall of an award of sequestration

if—

(a) sequestration has been awarded by virtue of a debtor application, and

(b) the sheriff directs the Accountant in Bankruptcy to dismiss the debtor

application. 15

(3B) The effect of the recall of an award of sequestration is, so far as practicable, to

restore the debtor and any other person affected by the sequestration to the

position the debtor or, as the case may be, the other person would have been in

if the sequestration had not been awarded.

(3C) A recall of an award of sequestration does not— 20

(a) affect the interruption of prescription caused by—

(i) the presentation of the petition for sequestration,

(ii) the making of the debtor application, or

(iii) the submission of a claim under section 22 or 48,

(b) invalidate any transaction entered into before such recall by the interim 25

trustee, or by the trustee, with a person acting in good faith, or

(c) affect a bankruptcy restrictions order which has not been annulled under

section 56J(1)(a).

(3D) Without delay after granting a recall of an award of sequestration under

subsection (3A), the Accountant in Bankruptcy must send a certified copy of 30

the decision to the Keeper of the Register of Inhibitions for recording in that

register.”.

Administration of estate

12A Debtor’s bank account

In section 32 of the 1985 Act (vesting of estate, and dealings of debtor, after 35

sequestration)—

(a) after subsection (5), insert—

“(5A) Where the trustee knows, or becomes aware, of any estate vested in the trustee

under section 31 or this section which comprises funds held by a bank, the

trustee must serve a notice on the bank— 40


(a) informing the bank of the sequestration, and

(b) specifying reasonable detail in order to allow the bank to identify the

debtor and the funds held.

(5B) A notice under subsection (5A)—

(a) must be in writing and may be sent— 5

(i) by first class post or by using a registered or recorded delivery

postal service to the bank,

(ii) in some other manner (including by electronic means) which the

trustee reasonably considers likely to cause it to be delivered to the

bank on the same or next day, 10

(b) is deemed to have been received the day after it is sent.”,

(b) in subsection (6), after sub-paragraph (i) insert—

“(ia) the trustee is not entitled by virtue of this subsection to any remedy

against a bank in respect of a banking transaction entered into

before the receipt by the bank of a notice under subsection (5A) 15

(whether or not the bank is aware of the sequestration),”

(c) in subsection (8), after “(9)” insert “and (9C)”,

(d) after subsection (9B), insert—

“(9C) Subsection (8) does not apply where the dealing is a banking transaction

entered into before the receipt by the bank of a notice under subsection (5A) 20

(whether or not the bank is aware of the sequestration).”, and

(e) after subsection (10), insert—

“(11) In this section “bank” has the same meaning as “appropriate bank or

institution” in section 73(1).”.

13 Submission of claims to trustee 25

In section 48 of the 1985 Act (submission of claims)—

(a) in subsection (1)—

(i) for “subsection (2)” substitute “subsections (1A) and (2)”, and

(ii) for sub-paragraph (ii) substitute—

“(ii) in accordance with subsection (1A).”, and 30


“(1A) A creditor must, in order to obtain an adjudication as to the creditor’s

entitlement (so far as funds are available) to a dividend out of the debtor's

estate, submit a claim to the trustee not later than the relevant day.

(1B) The “relevant day”, in relation to a creditor, means— 35

(a) where a notice is given to the creditor under section 21A(2), the day

which is 120 days after the day on which the notice is given, or

(b) where no notice is given to the creditor under that section, the day which

is 120 days after the day on which the trustee gives notice to that creditor

inviting the submission of claims. 40


(1C) If a creditor submits a claim to the trustee after the relevant day, the trustee

may, in respect of any accounting period, provide an adjudication as to the

creditor’s entitlement (so far as funds are available) to a dividend out of the

debtor’s estate if—

(a) the claim is submitted not later than 8 weeks before the end of the 5

accounting period, and

(b) there were exceptional circumstances which prevented the claim from

being submitted before the relevant day.”.

14 First accounting period

In section 52 of the 1985 Act (estate to be distributed in respect of accounting 10

periods)—

(a) in subsection (2)(a) after “months” insert “or such shorter period as may be agreed

or determined in accordance with subsection (2ZB), either period”,

(b) in subsection (2ZA) after “awarded” insert “or such shorter period as may be

agreed or determined in accordance with subsection (2ZB)”, and 15

(c) after subsection (2ZA) insert—

“(2ZB)This subsection applies where the trustee considers that the funds of the

debtor’s estate are sufficient to pay a dividend in accordance with subsection

(3) in respect of—

(a) in the case where the trustee is the Accountant in Bankruptcy, a shorter 20

period of not less than 6 months determined by the Accountant in

Bankruptcy,

(b) in any other case, a shorter period of not less than 6 months agreed—

(i) between the trustee and the commissioners, or

(ii) if there are no commissioners, between the trustee and the 25

Accountant in Bankruptcy.”.

15 Vesting of estate after sequestration

(1) In section 31(5A) of the 1985 Act (reinvestment of non-vested contingent interest), for

“on which the debtor’s discharge becomes effective” substitute “which is 4 years after

the date of sequestration”. 30

(2) In section 32(10) of the 1985 Act (meaning of “relevant date” for purposes of vesting

etc.), for “on which the debtor’s discharge becomes effective” substitute “which is 4

years after the date of sequestration”.

Discharge following sequestration

16 Discharge of debtor 35

For section 54 of the 1985 Act (automatic discharge of debtor) substitute—

“54 Discharge where Accountant in Bankruptcy not the trustee

(1) This section applies where the Accountant in Bankruptcy is not the trustee.


(2) The Accountant in Bankruptcy may discharge the debtor at any time after the

date which is 12 months after the date on which sequestration is awarded by

granting a certificate of discharge in the prescribed form.

(3) Before deciding whether to discharge the debtor under subsection (2), the

Accountant in Bankruptcy must— 5

(a) consider the report provided by the trustee under subsection (4), and

(b) take into account any representations received during the period

mentioned in subsection (6)(b).

(4) The trustee must prepare and send a report to the Accountant in Bankruptcy—

(a) without delay after the date which is 10 months after the date on which 10

sequestration is awarded, and

(b) if the debtor is not otherwise discharged, before sending to the

Accountant in Bankruptcy the documentation referred to in section

57(1)(b).

(5) The report must include— 15

(a) information about—

(i) the debtor’s assets, liabilities, financial affairs and business affairs,

(ii) the debtor’s conduct in relation to those assets, liabilities, financial

affairs and business affairs,

(iii) the sequestration, and 20

(iv) the debtor’s conduct in the course of the sequestration,

(b) a statement of whether, in the opinion of the trustee, the debtor has as at

the date of the report—

(i) complied with any debtor contribution order,

(ii) co-operated with the trustee in accordance with section 64, 25

(iii) complied with the statement of undertakings,

(iv) made a full and fair surrender of the debtor’s estate,

(v) made a full disclosure of all claims which the debtor is entitled to

make against other persons, and

(vi) delivered to the trustee every document under the debtor’s control 30

relating to the debtor’s estate, business or financial affairs, and

(c) a statement of whether the trustee has, as at the date that the report is sent

to the Accountant in Bankruptcy, carried out all of the trustee’s functions

in accordance with section 3.

(6) The trustee must, at the same time as sending a report to the Accountant in 35

Bankruptcy under this section, give to the debtor and every creditor known to

the trustee—

(a) a copy of the report, and

(b) a notice informing the recipient that the person has a right to make

representations to the Accountant in Bankruptcy in relation to the report 40


which the notice is given.


(7) A discharge under this section must not take effect before the end of the period

of 14 days beginning with the day of notification of the decision.

54A Discharge where Accountant in Bankruptcy the trustee

(1) This section applies where the Accountant in Bankruptcy is the trustee.

(2) The Accountant in Bankruptcy may discharge the debtor at any time after the 5

date which is 12 months after the date on which sequestration is awarded by

granting a certificate of discharge in the prescribed form.

(3) The Accountant in Bankruptcy must, as soon as is practicable after the date

which is 12 months after the date on which sequestration is awarded—

(a) decide whether to discharge the debtor under subsection (2), 10

(b) notify the debtor and every creditor known to the Accountant in

Bankruptcy of that decision, and

(c) send a report to those persons.

(4) The report must give an account of—

(a) the debtor’s assets, liabilities, financial affairs and business affairs, 15

(b) the debtor’s conduct in relation to those assets, liabilities, financial

affairs and business affairs,

(c) the sequestration, and

(d) the debtor’s conduct in the course of the sequestration, including

compliance with the statement of undertakings. 20

(5) Subsection (6) applies where—

(a) the Accountant in Bankruptcy refuses to discharge the debtor under

subsection (2), and

(b) the debtor is not otherwise discharged.

(6) The Accountant in Bankruptcy must, as soon as is practicable after the date 25

which is 12 months after the date of the refusal—

(a) decide whether to discharge or refuse to discharge the debtor under

subsection (2),

(b) notify the debtor and every creditor known to the Accountant in

Bankruptcy of that decision, and 30

(c) send a report giving an account of the matters mentioned in subsection

(4) to those persons.

(7) A discharge under this section must not take effect before the end of the period

of 14 days beginning with the day of notification of the decision.

54B Discharge of debtor: review and appeal 35

(1) The trustee or the debtor may apply to the Accountant in Bankruptcy for a

review of a decision under section 54(2) or 54A(2) to refuse to discharge the

debtor.

(2) Any creditor may apply to the Accountant in Bankruptcy for a review of a

decision under section 54(2) or 54A(2) to discharge the debtor. 40


(3) An application under subsection (1) or (2) must be made before the end of the

period of 14 days beginning with the day of notification of the decision under

section 54(2) or, as the case may be, 54A(2).

(4) If an application for a review under subsection (2) is made, the discharge is


Bankruptcy.

(5) If an application for a review under subsection (1) or (2) is made, the

Accountant in Bankruptcy must—




(b) confirm or revoke the decision before the expiry of the period of 28 days

beginning with the day on which the application is made.

(6) The debtor, the trustee or any creditor may appeal to the sheriff against any

decision of the Accountant in Bankruptcy under subsection (5)(b) before the 15

end of the period of 14 days beginning with the date of the decision.”.

17 Repeal of discharge on composition

(1) Section 56 of the 1985 Act (discharge on composition) is repealed.

(2) Section 56K of the 1985 Act (effect of discharge on approval of offer of composition) is

repealed. 20

(3) Schedule 4 to the 1985 Act (discharge on composition) is repealed.

18 Deferral of discharge where debtor cannot be traced

After section 54C of the 1985 Act (inserted by section 7(1)), insert—

“54D Deferral of discharge where debtor cannot be traced

(1) Subsection (2) applies where— 25

(a) the trustee, having made reasonable inquiries, is unable to ascertain the

whereabouts of the debtor, and

(b) as a result is unable to carry out the trustee’s functions in accordance

with section 3.

(2) The trustee must— 30

(a) notify the debtor by sending to the last known address of the debtor a

deferral notice in the prescribed form,

(b) give a deferral notice to every creditor known to the trustee, and

(c) where the trustee is not the Accountant in Bankruptcy, apply in the

prescribed form to the Accountant in Bankruptcy for a deferral. 35

(3) A deferral application under subsection (2)(c) must be made by the trustee—

(a) no earlier than the date which is 8 months after the date on which

sequestration is awarded, and

(b) no later than the date which is 10 months after the date on which

sequestration is awarded. 40


(4) After receiving a deferral application, the Accountant in Bankruptcy must—




(b) if satisfied of the matters mentioned in subsection (5), issue a certificate 5

deferring indefinitely the discharge of the debtor.

(5) The matters are—

(a) that the trustee is unable to ascertain the whereabouts of the debtor, and

(b) it would not be reasonably practicable for the trustee to continue to

search for the debtor. 10

(6) Where the Accountant in Bankruptcy is the trustee and has given a deferral

notice in accordance with subsection (2)(b), the Accountant in Bankruptcy

must—



which the deferral notice is given, and

(b) if satisfied that it would not be reasonably practicable to continue to

search for the debtor, issue a certificate deferring indefinitely the

discharge of the debtor.

(7) Where a certificate is issued under subsection (4)(b) or (6)(b), the Accountant 20

in Bankruptcy must make an appropriate entry in the register of insolvencies.

54E Debtor not traced: new trustee

(1) This section applies where a certificate is issued under section 54D(4)(b).

(2) The trustee may apply to the Accountant in Bankruptcy in the prescribed form

for authority to resign office. 25

(2A) An application under subsection (2) must include details of every creditor

known to the trustee.

(3) An application under subsection (2) may not be made—

(a) if after the certificate is issued the trustee ascertains the whereabouts of

the debtor or the debtor makes contact with the trustee, 30

(b) after the date which is 6 months after the date on which the certificate is

awarded.

(4) Where an application is made under subsection (2), the Accountant in

Bankruptcy must issue to the trustee who made the application a notice in the

prescribed form granting the application. 35

(5) Where a notice is issued under subsection (4)—

(a) the Accountant in Bankruptcy is deemed to be the trustee,

(b) the Accountant in Bankruptcy must notify every creditor known to the

Accountant in Bankruptcy that the Accountant in Bankruptcy is deemed

to be the trustee, 40


(c) the former trustee is not entitled to recover outlays and remuneration

payable in accordance with section 53 other than by a claim in the final

distribution of the debtor’s estate, and

(d) subsections (6) to (8) of section 28 apply in relation to the appointment

of the Accountant in Bankruptcy as the new trustee as they apply in 5

relation to the appointment of a new trustee under that section.

54F Debtor not traced: subsequent debtor contact

(1) This section applies where—

(a) a certificate is issued under section 54D(4)(b) or (6)(b), and

(b) the trustee ascertains the whereabouts of the debtor or the debtor makes 10

contact with the trustee.

(2) Where the Accountant in Bankruptcy is the trustee, the Accountant in

Bankruptcy may discharge the debtor at any time after the date which is 12

months after the date on which—

(a) the whereabouts of the debtor were ascertained, or 15

(b) the debtor made contact with the trustee.

(4) Where the Accountant in Bankruptcy is not the trustee, the trustee must prepare

and send a report to the Accountant in Bankruptcy without delay after the date

which is 10 months after the earlier of the date on which—

(a) the whereabouts of the debtor were ascertained by the trustee, or 20

(b) the debtor made contact with the trustee.

(4A) If the trustee sends a report to the Accountant in Bankruptcy under subsection

(4)—

(a) the report must include the matters included in a report sent to the

Accountant in Bankruptcy in accordance with subsection (5) of section 25

54, and

(b) subsection (6) of that section applies to the report as it applies to a report

sent in accordance with subsection (4) of that section.

(8) After receiving a report under subsection (4), the Accountant in Bankruptcy

may discharge the debtor by granting a certificate of discharge in the 30

prescribed form.

(8A) Before deciding whether to discharge the debtor under subsection (8), the


(a) consider the report prepared by the trustee under subsection (4), and

(b) take into account any representations received during the period 35

mentioned in subsection (6) of section 54 (as applied in accordance with

subsection (4A)).

(9) A discharge under subsection (2) or (8) must not take effect on a date before

the end of the period of 14 days beginning with the day of notification of the

decision. 40

(10) A discharge under subsection (2) or (8) is deemed for the purposes of section

55 to have been given under section 54(2).


54G Subsequent debtor contact: review and appeal

(1) The debtor may apply to the Accountant in Bankruptcy for a review of a

decision under section 54F(2) or (8) to refuse to discharge the debtor.

(2) Any creditor may apply to the Accountant in Bankruptcy for a review of a

decision under section 54F(2) or (8) to discharge the debtor. 5

(3) An application under subsection (1) or (2) must be made before the end of the

period of 14 days beginning with the day of notification of the decision under

section 54F(2) or, as the case may be, 54F(8).

(4) If an application for a review under subsection (2) is made, the discharge is


Bankruptcy.

(5) If an application for a review under subsection (1) or (2) is made, the





(b) confirm or revoke the decision before the expiry of the period of 28 days


(6) The debtor, the trustee or any creditor may appeal to the sheriff against any

decision of the Accountant in Bankruptcy under subsection (5)(b) before the 20

end of the period of 14 days beginning with the date of the decision.”.

19 Unclaimed dividends and unapplied balances

In section 57 of the 1985 Act (discharge of trustee)—


(i) for paragraph (a), substitute— 25

“(a) must pay to the Accountant in Bankruptcy any unclaimed dividends and

unapplied balances,”, and

(ii) in paragraph (b), the words “and a receipt for the deposit of the unclaimed

dividends and unapplied balances” are repealed, and

(b) after subsection (1A) (inserted by section 22(2)(b)), insert— 30

“(1B) The Accountant in Bankruptcy must deposit any unclaimed dividends and any

unapplied balances paid to the Accountant in Bankruptcy under subsection

(1)(a) in an appropriate bank or institution.”.

20 Assets discovered after trustee discharge: appointment of trustee

After section 58A of the 1985 Act, insert— 35


“58B Assets discovered after trustee discharge: appointment of trustee

(1) This section applies where, after the trustee’s discharge under section 57 or

58A but before the expiry of the period of 5 years from the date of

sequestration, the trustee or the Accountant in Bankruptcy becomes aware of

any newly identified estate with a value of not less than £1000 (or such other 5

sum as may be prescribed).

(2) In this section, “newly identified estate” means any part of the debtor’s estate

which—

(a) vested in the trustee in accordance with section 31 or 32, and

(b) was not, before the trustee was discharged, known to the trustee. 10

(3) The Accountant in Bankruptcy may—

(a) in the case where the trustee was discharged under section 57—

(i) on the application of the trustee who was discharged, reappoint

that person as trustee on the debtor’s estate, or

(ii) appoint the Accountant in Bankruptcy as trustee on the debtor’s 15

estate,

(b) in the case where the Accountant in Bankruptcy was discharged under

section 58A, reappoint the Accountant in Bankruptcy as trustee on the

debtor’s estate.

(4) The Accountant in Bankruptcy may make an appointment or reappointment 20

under subsection (3) only if, in the opinion of the Accountant in Bankruptcy,

the value of the newly identified estate is likely to exceed the costs of—

(a) the appointment or reappointment, and

(b) the recovery, management, realisation and distribution of the newly

identified estate. 25

(5) Where the trustee was discharged under section 57 and applies for

reappointment under subsection (3)(a)(i), the discharged trustee must provide

to the Accountant in Bankruptcy the information mentioned in subsection

(7)(a) to (c).

(5A) Where the trustee was discharged under section 57 and does not apply for 30

reappointment under subsection (3)(a)(i), the discharged trustee must—

(a) provide to the Accountant in Bankruptcy details of any newly identified

estate that the discharged trustee becomes aware of, where that estate has

a value which is not less than the value mentioned in subsection (1), and

(b) if requested by the Accountant in Bankruptcy, provide to the Accountant 35

in Bankruptcy the information mentioned in subsection (7)(b) and (c).

(6) Where the Accountant in Bankruptcy was discharged under section 58A, the

Accountant in Bankruptcy must record and consider the information mentioned

in subsection (7).

(7) The information is— 40

(a) the estimated value of the newly identified estate,

(b) the reason why the newly identified estate forms part of the debtor’s

estate,


(c) the reason why the newly identified estate was not recovered,

(d) the estimated outlays and remuneration of the trustee following an

appointment or reappointment under subsection (3), and

(e) the likely distribution under section 51 following an appointment or

reappointment under subsection (3). 5

(8) This section is without prejudice to any other right to take action following the

discharge of the trustee.

58C Assets discovered after trustee discharge: notice

(1) The Accountant in Bankruptcy must notify the debtor and any other person the

Accountant in Bankruptcy considers to have an interest— 10

(a) where an application is made under section 58B(3)(a)(i), and

(b) where the Accountant in Bankruptcy proposes to make an appointment

or reappointment under section 58B(3)(a)(ii) or (b).

(2) A notice under subsection (1) must inform the recipient that the person has a

right to make representations to the Accountant in Bankruptcy in relation to the 15

application or the proposed appointment or reappointment before the expiry of

the period of 14 days beginning with the day on which the notice is given.

(3) Before making an appointment or reappointment under section 58B, the

Accountant in Bankruptcy must take into account any representations made by

an interested person. 20

(4) If the Accountant in Bankruptcy makes an appointment or reappointment under

section 58B, the Accountant in Bankruptcy must as soon as is practicable

notify the debtor of the appointment or reappointment.

(5) A notice under subsection (4) must include information in relation to the

debtor’s duties to co-operate with the trustee under section 64. 25

58D Assets discovered after trustee discharge: appeal

Where the Accountant in Bankruptcy makes or refuses to make an order under

section 58B, an interested person may, no later than 14 days after the date of

the decision, appeal to the sheriff.”.

Records 30

21 Register of insolvencies

In section 1A of the 1985 Act (supervisory functions of the Accountant in

Bankruptcy)—

(a) in subsection (1)(b)—

(i) for “the Court of Session by act of sederunt” substitute “regulations made 35

by the Scottish Ministers”, and

(ii) after paragraph (iii), insert “, and

(iv) any other document as may be specified in regulations made under

this subsection or any other enactment.”, and



“(5) Regulations under subsection (1)(b) may in particular prescribe circumstances

where information need not be included in the register of insolvencies, if in the

opinion of the Accountant in Bankruptcy inclusion of the information would be

likely to jeopardise the safety or welfare of any person.”.

22 Sederunt book 5

(2) In section 57 of the 1985 Act (discharge of trustee)—

(a) in subsection (1)(b), after “book” insert “in the format specified by subsection

(1A) and”,


“(1A) The trustee must send an electronic version of the sederunt book in such format 10

as the Accountant in Bankruptcy may from time to time direct.”, and

(c) in subsection (2)(b), for “at the office of the Accountant in Bankruptcy” substitute

“following a request made to the Accountant in Bankruptcy”.

(3) In section 58A(4)(b)(ii) of the 1985 Act (notice on sederunt book sent on discharge of

Accountant in Bankruptcy as trustee), for “at such address as the Accountant in 15

Bankruptcy may determine” substitute “following a request made to the Accountant in

Bankruptcy”.

(4) In section 62 of the 1985 Act (sederunt book and other documents)—

(a) in subsection (2), for “Court of Session may by act of sederunt” substitute “the

Scottish Ministers may by regulations”, and 20

(b) after that subsection, insert—

“(2A) The trustee must insert in the sederunt book the information listed in Schedule

3A to this Act.

(2B) The Scottish Ministers may by regulations modify Schedule 3A.”.

(5) After Schedule 3 to the 1985 Act insert the Schedule 3A set out in schedule 2 to this 25

Act.

23 Abolition of certain requirements in relation to Edinburgh Gazette

(1) In section 16 of the 1985 Act (petitions for recall of sequestration), for subsection (3)

substitute—

“(3) On service of a copy of the petition under subsection (2), the Accountant in 30

Bankruptcy must enter particulars of the petition in the register of

insolvencies.”.

(2) In section 45 of the 1985 Act (public examination)—

(a) in subsection (3)(a), for “publish in the Edinburgh Gazette” substitute “send to the

Accountant in Bankruptcy”, and 35


“(3A) The Accountant in Bankruptcy must enter particulars of the notice sent under

subsection (3)(a) in the register of insolvencies.”.

(3) Section 71 (Edinburgh Gazette) is repealed.


Functions of sheriff and Accountant in Bankruptcy in sequestration

24 Application by trustee for direction on matters in sequestration

(1) In section 3(6) of the 1985 Act (trustee application to the sheriff for directions in

relation to any particular matter), for “A trustee” substitute “Where the Accountant in

Bankruptcy is the trustee, the Accountant in Bankruptcy”. 5


“3A Application to Accountant in Bankruptcy for a direction

(1) This section applies where the Accountant in Bankruptcy is not the trustee.

(2) The trustee may apply to the Accountant in Bankruptcy for a direction in

relation to any particular matter arising in the sequestration. 10

(3) The Accountant in Bankruptcy may, before giving a direction on any particular

matter under this section, refer the matter to the sheriff by making an

application for a direction in relation to that matter.

(4) The trustee may apply to the Accountant in Bankruptcy for a review of a

direction given by the Accountant in Bankruptcy under this section. 15

(5) An application for a review under subsection (4) may not be made—

(a) by an interim trustee,

(b) after the expiry of the period of 14 days beginning with the day on which

notice of the direction by the Accountant in Bankruptcy is given to the

trustee, or 20

(c) in relation to a matter on which the Accountant in Bankruptcy has

applied to the sheriff for a direction under subsection (3).


Bankruptcy must—

(a) take into account any representations made by the trustee, the debtor, any 25

creditor and any other person having an interest before the expiry of the

period of 21 days beginning with the day on which the application is

made, and

(b) confirm, amend or revoke the direction before the expiry of the period of


(7) The trustee may appeal to the sheriff against a decision by the Accountant in

Bankruptcy under subsection (6)(b) before the expiry of the period of 14 days

beginning with the day of the decision.”.

25 Recall of sequestration by sheriff

(1) In section 16 of the 1985 Act (petitions for recall of sequestration)— 35


“(1A) A petition for recall of an award of sequestration may not be presented to the

sheriff if the only ground is that the debtor has paid or is able to pay the

debtor’s debts in full.

(1B) Subsection (1A) does not apply where— 40


(a) sequestration was awarded following a petition of a qualified creditor or

qualified creditors, and

(b) a petition for recall of the award of sequestration includes the ground that

the debtor was not apparently insolvent.”, and

(b) in subsection (4)— 5

(i) after “presented”, where it first occurs, insert “at any time”, and

(ii) paragraphs (a) and (b) are repealed.

(2) The title of section 17 of the 1985 Act becomes “Recall of sequestration by sheriff”.

(3) In section 17 of the 1985 Act—

(a) in subsection (1)(a), the words “or has given sufficient security for their payment” 10

are repealed,

(ba) after subsection (2), insert—

“(2A) Where the sheriff intends to recall an award of sequestration on the ground that

the debtor has paid the debtor’s debts in full, the order recalling the award may

not— 15

(a) be made before the payment in full of the outlays and remuneration of

the interim trustee and the trustee,

(b) be subject to any conditions which are to be fulfilled before the order

takes effect.”,

(bb) in subsection (3), after “On”, insert “or before”, and 20

(c) in subsection (8), after “any”, in the second place where it occurs, insert “interim

or final”.

26 Recall of sequestration by Accountant in Bankruptcy

After section 17 of the 1985 Act, insert—

“17A Application to Accountant in Bankruptcy for recall of sequestration 25

(1) An application for recall of an award of sequestration may be made to the

Accountant in Bankruptcy on the ground that the debtor has paid or is able to

pay the debtor’s debts in full.

(2) An application may be made by—

(a) the debtor, 30

(b) any creditor (whether or not a person who was a petitioner for, or

concurred in a debtor application for, the sequestration),

(c) the trustee (where the Accountant in Bankruptcy is not the trustee), or

(d) any other person having an interest (whether or not a person who was a

petitioner for the sequestration). 35

(3) The person making an application must, at the same time as applying to the

Accountant in Bankruptcy, give to the persons mentioned in subsection (4)—

(a) a copy of the application, and


(b) a notice informing the recipient that the person has a right to make

representations to the Accountant in Bankruptcy in relation to the

application before the expiry of the period of 21 days beginning with the

day on which the notice is given.

(4) The persons are— 5

(a) the debtor,

(b) any person who was a petitioner for, or concurred in a debtor application

for, the sequestration,

(c) the trustee.

(5) Despite an application being made, the proceedings in the sequestration are to 10

continue as if the application had not been made until a recall of an award of

sequestration is granted under section 17E(1) (subject to any conditions

imposed under section 17E(4)).

(6) Where the applicant withdraws the application or dies, the Accountant in

Bankruptcy may continue the application by substituting any person mentioned 15

in subsection (2) for the applicant.

17B Application under section 17A: further procedure

(1) This section applies where an application is made under section 17A.

(2) The trustee must prepare a statement on the debtor’s affairs, so far as within the

knowledge of the trustee. 20

(3) The trustee must submit the statement to the Accountant in Bankruptcy—

(a) at the same time as the trustee makes the application under section 17A,

or

(b) where the application is made by another person, before the expiry of the

period of 21 days beginning with the day on which the notice is given 25

under section 17A(3)(b).

(4) The statement must—

(a) indicate whether the debtor has agreed to—

(i) the interim trustee’s claim for outlays reasonably incurred and for

remuneration for work reasonably undertaken by the interim 30

trustee (including any outlays and remuneration which are yet to

be incurred), and

(ii) the trustee’s claim for outlays reasonably incurred and for

remuneration for work reasonably undertaken by the trustee

(including any outlays and remuneration which are yet to be 35

incurred),

(b) state whether or not the debtor’s debts have been paid in full (including

the payment of the outlays and remuneration of the interim trustee and

the trustee),

(c) where the debtor’s debts have not been so paid— 40

(i) provide details of any debt which has not been paid, and


(ii) indicate whether, in the opinion of the trustee, the debtor’s assets

are likely to be sufficient to pay the debts in full (including the

payment of the outlays and remuneration of the interim trustee and

the trustee) before the day which is 8 weeks after the day on which

the statement is submitted, and 5

(d) provide details of any distribution of the debtor’s estate.

(6) The trustee must notify every creditor known to the trustee that an application

has been made—

(a) where the application is made by the trustee, before the expiry of the

period of 7 days beginning with the day on which the application is 10

made,

(b) where the application is made by another person, before the expiry of the

period of 7 days beginning with the day on which the notice is given

under section 17A(3)(b).

(7) If a creditor has not previously submitted a claim under section 22 or 48, the 15

creditor must, in order to be included in the statement made by the trustee,

submit a claim.

(8) A claim must be submitted—

(a) in accordance with section 22(2) and (3), and

(b) before the expiry of the period of 14 days beginning with the day on 20

which notice is given under subsection (6).

(9) If any creditor submits a claim in accordance with subsection (8), the trustee

must update and resubmit the statement before the expiry of the period of 7

days beginning with the expiry of the period mentioned in subsection (8)(b).

(10) The trustee must update and resubmit the statement if— 25

(a) the statement previously submitted did not state in accordance with

subsection (4)(b) that the debtor’s debts have been paid in full, and

(b) before the day on which the application is determined by the Accountant

in Bankruptcy, the trustee is able to make that statement.

17C Determination of outlays and remuneration 30

(1) This section applies where—

(a) the Accountant in Bankruptcy receives an application under section 17A,

and

(b) the statement submitted by the trustee under section 17B indicates that

the amount of the outlays and remuneration of the trustee is not agreed. 35

(2) The trustee must provide to the Accountant in Bankruptcy—

(a) at the same time as submitting the statement under section 17B—

(i) the trustee’s accounts of the trustee’s intromissions with the

debtor's estate for audit, and


(ii) details of the trustee’s claim for outlays reasonably incurred and

for remuneration for work reasonably undertaken by the trustee

(including any outlays and remuneration which are yet to be

incurred), and

(b) such other information in relation to that claim as may be reasonably 5

requested by the Accountant in Bankruptcy.

(3) The Accountant in Bankruptcy must before the expiry of the period of 28 days

beginning with the expiry of the period mentioned in section 17B(9) issue a

determination fixing the amount of the outlays and the remuneration payable to

the trustee. 10

(3A) The Accountant in Bankruptcy may before the expiry of the period mentioned

in subsection (3) determine the expenses reasonably incurred by a creditor who

was a petitioner or, as the case may be, concurred in a debtor application for

sequestration.

(4) Subsections (4) and (5) of section 53 apply to the Accountant in Bankruptcy 15

for the purpose of making a determination in accordance with subsection (3) as

they apply to the commissioners or the Accountant in Bankruptcy for the

purpose of fixing an amount under that section.

17E Recall of sequestration by Accountant in Bankruptcy

(1) The Accountant in Bankruptcy may grant a recall of an award of sequestration 20

if—

(a) the trustee has notified the Accountant in Bankruptcy in the statement

submitted under section 17B that the debtor’s debts have been paid in

full (including the payment of the outlays and remuneration of the

interim trustee and the trustee), and 25

(b) the Accountant in Bankruptcy is satisfied that in all the circumstances of

the case, it is appropriate to do so.

(1A) The Accountant in Bankruptcy may not grant a recall of an award of

sequestration after—

(a) where no appeal is made under section 17H(5)(a), the day which is 8 30

weeks after the day on which the statement was first submitted under

section 17B(3), or

(b) where such an appeal is made, such later day which is 14 days after the

day on which the appeal is finally determined or abandoned.

(2) The effect of the recall of an award of sequestration is, so far as practicable, to 35

restore the debtor and any other person affected by the sequestration to the

position the debtor or, as the case may be, the other person would have been in

if the sequestration had not been awarded.

(3) A recall of an award of sequestration is not to—

(a) affect the interruption of prescription caused by— 40

(i) the presentation of the petition for sequestration,

(ii) the making of the debtor application, or

(iii) the submission of a claim under section 22 or 48,


(b) invalidate any transaction entered into before such recall by the interim

trustee, or by the trustee, with a person acting in good faith, or

(c) affect a bankruptcy restrictions order which has not been annulled under

section 56J(1)(a).

(4) If the Accountant in Bankruptcy does not grant a recall of an award of 5

sequestration under subsection (1) the sequestration is to continue but is to be

subject to such conditions as the Accountant in Bankruptcy thinks fit.

(5) Without delay after granting a recall of an award of sequestration under

subsection (1), the Accountant in Bankruptcy must send a certified copy of the

decision to the Keeper of the Register of Inhibitions for recording in that 10

register.

17F Recall where Accountant in Bankruptcy the trustee

(1) This section applies where the Accountant in Bankruptcy—

(a) is the trustee, and

(b) considers that recall of an award of sequestration should be granted on 15

the ground that the debtor has paid or is able to pay the debtor’s debts in

full (including the payment of the outlays and remuneration of the

interim trustee and the trustee).

(2) The Accountant in Bankruptcy must notify the debtor and every creditor

known to the Accountant in Bankruptcy that the Accountant in Bankruptcy 20

considers that subsection (1) applies.

(3) If a creditor has not previously submitted a claim under section 22 or 48, the

creditor must, in order for the creditor’s claim to a dividend out of the debtor’s

estate to be considered, submit a claim.

(4) A claim must be submitted— 25

(a) in accordance with section 22(2) and (3), and

(b) before the expiry of the period of 14 days beginning with the day on

which notice is given under subsection (2).

(5) Before granting a recall of an award of sequestration the Accountant in




which the notice is given under subsection (2), and

(b) make a determination of the Accountant in Bankruptcy’s fees and

outlays calculated in accordance with regulations made under section 35

69A.

(9) The Accountant in Bankruptcy may grant a recall of an award of sequestration

if the Accountant in Bankruptcy is satisfied that—

(a) the debtor has paid the debtor’s debts in full (including the payment of

the outlays and remuneration of the interim trustee and the trustee), 40

(aa) those debts were paid in full before the expiry of the period of 8 weeks

beginning with the expiry of the period mentioned in subsection (5)(a),

and


(b) in all the circumstances of the case, it is appropriate to do so.

(10) Subsections (2) and (3) of section 17E apply in relation to a recall of an award

of sequestration granted under subsection (9) as they apply in relation to a

recall of an award of sequestration granted under that section.

(11) Without delay after granting a recall of an award of sequestration under 5

subsection (9), the Accountant in Bankruptcy must send a certified copy of the

decision to the Keeper of the Register of Inhibitions for recording in that

register.

17G Reference to sheriff

(1) The Accountant in Bankruptcy may, at any time before deciding under section 10

17E(1) whether to grant an application for recall of an award of sequestration,

remit to the sheriff an application made under section 17A.

(2) The Accountant in Bankruptcy may, at any time before deciding under section

17F(9) whether to grant a recall of an award of sequestration, remit the case to

the sheriff. 15

(3) If an application is remitted to the sheriff under subsection (1) or (2), the

sheriff may dispose of the application or the case in accordance with section 17

as if it were a petition presented by the Accountant in Bankruptcy under

section 16.

17H Recall of sequestration by Accountant in Bankruptcy: review and appeal 20

(1) A person mentioned in subsection (2) may apply to the Accountant in

Bankruptcy for a review of—

(b) a decision of the Accountant in Bankruptcy under section 17E(1) or

17F(9) to grant or refuse to grant a recall of an award of sequestration,

(c) a determination of the Accountant in Bankruptcy under section 17C(3A). 25

(2) The persons are—

(a) the debtor,

(b) any creditor,

(c) the trustee,

(d) any other person having an interest. 30


period of 14 days beginning with the day on which the decision or, as the case

may be, the determination or requirement is made.

(4) If an application under subsection (1) is made, the Accountant in Bankruptcy

must— 35




(b) confirm, amend or revoke the decision, determination or requirement


which the application is made.


(5) A person mentioned in subsection (2) may, before the expiry of the period of

14 days beginning with the day on which the decision, determination or

requirement is made, appeal to the sheriff against—

(a) a determination of the Accountant in Bankruptcy under section 17C(3) or

17F(5)(b), 5

(b) a decision of the Accountant in Bankruptcy under subsection (4)(b),

(6) Any decision of the sheriff on an appeal relating to a determination of the

Accountant in Bankruptcy under section 17C(3) or 17F(5)(b) is final.

(7) In upholding an appeal relating to a decision under section 17C(1) or 17F(6)

the sheriff may quash the decision of the Accountant in Bankruptcy and remit 10

the case, together with reasons for the sheriff’s decision, to the Accountant in

Bankruptcy.”.

27 Appointment of replacement trustee

(1) For section 25 of the 1985 Act, substitute—

“25 Appointment of replacement trustee 15

(1) This section applies where a replacement trustee is elected by virtue of a

trustee vote.

(2) On the election of the replacement trustee, the original trustee must

immediately make a report of the proceedings at the statutory meeting—

(a) where the original trustee was not the Accountant in Bankruptcy, to the 20

Accountant in Bankruptcy,

(b) where the original trustee was the Accountant in Bankruptcy, to the

sheriff.

(3) The debtor, a creditor, the original trustee, the replacement trustee or the

Accountant in Bankruptcy may object to any matter connected with the 25

election—

(a) in the case of an objection by a person other than the Accountant in

Bankruptcy, by applying to the Accountant in Bankruptcy, or

(b) in the case of an objection by the Accountant in Bankruptcy, by making

a summary application to the sheriff. 30

(4) An objection under subsection (3) must—

(a) specify the grounds on which the objection is taken, and

(b) be made before the expiry of the period of 4 days beginning with the day

of the statutory meeting.

(5) If there is no timeous objection under subsection (3), the Accountant in 35

Bankruptcy must without delay declare the elected person to be the trustee in

the sequestration.

(6) No expense in objecting under this section is to fall on the debtor’s estate.

25A Applications to Accountant in Bankruptcy: procedure

(1) This section applies where an application is made to the Accountant in 40

Bankruptcy under section 25(3)(a).


(2) The Accountant in Bankruptcy must—

(a) without delay give the original trustee, the replacement trustee, the

objector and any other interested person an opportunity to make written

submissions on the application, and

(b) make a decision. 5

(3) If the Accountant in Bankruptcy decides—

(a) to reject the objection in the application, the Accountant in Bankruptcy

must without delay declare the elected person to be the trustee in the

sequestration,

(b) to sustain the objection in the application, the Accountant in Bankruptcy 10

must order the original trustee to arrange a new meeting at which a new

trustee vote must be held.

(4) Sections 23 to 25B apply in relation to a meeting arranged by virtue of

subsection (3)(b).

(5) The original trustee, the replacement trustee, the objector and any other 15

interested person may apply to the Accountant in Bankruptcy for a review of a

decision under subsection (2)(b).


period of 14 days beginning with the day on which notice of the decision is

given. 20


Bankruptcy must—



which the application is made, and 25


28 days beginning with the day on which the application is made.

(8) The trustee, the objector and any other interested person may by summary

application appeal to the sheriff against a decision by the Accountant in

Bankruptcy under subsection (7)(b), before the expiry of the period of 14 days 30

beginning with the day of the decision.

(9) No expense in objecting under this section is to fall on the debtor’s estate.

25B Applications and appeals to sheriff: procedure

(1) This section applies where there is—

(a) an application by the Accountant in Bankruptcy under section 25(3)(b), 35

or

(b) an appeal under section 25A(8).

(2) The sheriff must—

(a) without delay give the parties an opportunity to be heard on the

application, and 40

(b) make a decision.

(3) If the sheriff decides—


(a) to reject an objection to the appointment of an elected person, the sheriff

must without delay declare the elected person to be the trustee in the

sequestration and make an order appointing the elected person to be the

trustee in the sequestration,

(b) to sustain an objection to the appointment of an elected person, the 5

sheriff must order the original trustee to arrange a new meeting at which

a new trustee vote must be held.

(4) Sections 23 to 25B apply in relation to a meeting arranged by virtue of

subsection (3)(b).

(5) Any declaration, appointment or decision of the sheriff under this section is 10

final.”.

(2) In section 28 of the 1985 Act (resignation and death of trustee), for subsection (5),

substitute—

“(5) Where no new trustee is elected in pursuance of subsection (2) or (3) the

Accountant in Bankruptcy may appoint as the trustee in the sequestration— 15

(a) a person who applies to the Accountant in Bankruptcy within the period

of 14 days beginning with the day of the meeting arranged under

subsection (2) or (3), or

(b) any other person as may be determined by the Accountant in Bankruptcy

and who consents to the appointment. 20

(5A) A person may not be appointed under subsection (5) if the person is ineligible

for election as a replacement trustee under section 24(2).

(5B) If, after the expiry of the period mentioned in subsection (5)(a), the Accountant

in Bankruptcy determines that no person is to be appointed under subsection

(5), the Accountant in Bankruptcy is deemed to be the trustee in the 25

sequestration.”.

28 Replacement of trustee acting in more than one sequestration

For section 28A of the 1985 Act, substitute—

“28A Replacement of trustee acting in more than one sequestration

(1) This section applies where a trustee acting as such in two or more 30

sequestrations—

(a) dies,

(b) ceases to be qualified to continue to act as trustee by virtue of section

24(2), or

(c) becomes subject to the circumstances mentioned in subsection (1A). 35

(1A) The circumstances are that—

(a) there is a conflict of interest affecting the trustee, or

(b) there is a change in the personal circumstances of the trustee,

which prevents, or makes it impracticable for, the trustee to carry out the

trustee’s functions. 40


(2) The Accountant in Bankruptcy may in a case where subsection (1)(b) or (c)

applies, determine that the trustee is removed from office in each sequestration

in which the trustee has ceased to be qualified.

(3) The Accountant in Bankruptcy may appoint as the trustee in each sequestration

in which the former trustee was acting a person— 5

(a) determined by the Accountant in Bankruptcy, and

(b) who consents to the appointment.

(4) A person may not be appointed under subsection (3) if the person is ineligible

for election as a replacement trustee under section 24(2).

(5) If, in relation to any sequestration, the Accountant in Bankruptcy determines 10

that no person is to be appointed under subsection (3), the Accountant in

Bankruptcy is deemed to be the trustee in that sequestration.

(5A) A determination or appointment under this section may be made—

(a) on the application of any person having an interest, or

(b) without an application, where the Accountant in Bankruptcy proposes to 15

make a determination or appointment of the Accountant in Bankruptcy’s

own accord.

(5B) The applicant must notify all interested persons where an application is made

under subsection (5A)(a).

(5C) The Accountant in Bankruptcy must notify all interested persons where the 20

Accountant in Bankruptcy proposes to make a determination or appointment

by virtue of subsection (5A)(b).

(5D) A notice under subsection (5B) or (5C) must inform the recipient that the

person has a right to make representations to the Accountant in Bankruptcy in

relation to the application or the proposed determination or appointment before 25

the expiry of the period of 14 days beginning with the day on which the notice

is given.

(5E) Before making a determination or appointment under this section, the

Accountant in Bankruptcy must take into account any representations made by

an interested person. 30

(6) The Accountant in Bankruptcy must notify any determination or appointment

under this section to—

(a) the former trustee (or in the case where the former trustee has died, the

former trustee’s representatives),

(b) the debtor, 35

(c) the trustee appointed under this section (where the trustee appointed is

not the Accountant in Bankruptcy),

(d) each sheriff who awarded sequestration or to whom sequestration was

transferred under section 15(2) of this Act.

(7) The trustee appointed under this section— 40

(a) must notify the determination or appointment under this section to every

creditor known to the trustee,

(b) may require—


(i) delivery of all documents relating to each sequestration in which

the former trustee was acting which are in the possession of the

former trustee or the former trustee’s representatives (other than

the former trustee’s accounts),

(ii) delivery of a copy of the former trustee’s accounts, 5

(iii) the former trustee or the former trustee’s representatives to submit

the trustee’s accounts for audit to the commissioners or, if there

are no commissioners, to the Accountant in Bankruptcy.

(8) Where the trustee appointed under this section requires submission of the

accounts in accordance with subsection (7)(b)(iii), the commissioners or, as the 10

case may be, the Accountant in Bankruptcy must issue a determination fixing

the amount of the outlays and remuneration payable to the former trustee or the

former trustee’s representatives in accordance with section 53.

28B Determination etc. under section 28A: review

(1) The persons mentioned in subsections (6)(a) and (b) and (7)(a) of section 28A 15

may apply to the Accountant in Bankruptcy for a review by the Accountant in

Bankruptcy of any determination or appointment under that section.


period of 14 days beginning with the day on which notice of the determination

or appointment is given. 20


must—




(b) confirm, amend or revoke the determination or appointment before the

expiry of the period of 28 days beginning with the day on which the

application is made.

(4) The persons mentioned in subsections (6)(a) and (b) and (7)(a) of section 28A

may appeal to the sheriff against a decision by the Accountant in Bankruptcy 30

under subsection (3)(b) before the expiry of the period of 14 days beginning

with the day of the decision.

(5) The Accountant in Bankruptcy may refer a case to the court for a direction

before—

(a) making any determination or appointment under section 28A, or 35

(b) undertaking any review under this section.

(6) An appeal under subsection (4) and a referral under subsection (5) must be

made—

(a) by a single petition to the Court of Session, where the appeal relates to

two or more sequestrations and the sequestrations are, by virtue of 40

section 9, in different sheriffdoms, and

(b) in any other case to the sheriff.”.


29 Removal of trustee and trustee not acting

In section 29 of the 1985 Act (removal of trustee and trustee not acting)—

(a) in subsection (1), for paragraph (b), substitute—

“(b) by order made by the Accountant in Bankruptcy, if the Accountant in

Bankruptcy is satisfied that there are reasons to do so on the basis of 5

circumstances other than those mentioned in subsection (9),”,


“(1A) An order removing a trustee in accordance with subsection (1)(b) may be

made—

(a) on the application of— 10

(i) the commissioners, or

(ii) a person representing not less than one quarter in value of the

creditors, or

(b) in any other case, where the Accountant in Bankruptcy is satisfied that

there are reasons to do so on the basis of circumstances other than those 15

mentioned in subsection (9).”,

(c) for subsection (2), substitute—

“(2) The Accountant in Bankruptcy must—

(a) order an application by a person mentioned in subsection (1A)(a) to be

served on the trustee, 20

(b) enter particulars of the application in the register of insolvencies, and

(c) before deciding whether or not to make an order under subsection (1)(b),

give the trustee the opportunity to make representations.”,

(d) for subsection (3), substitute—

“(3) The Accountant in Bankruptcy may in ordering, or instead of ordering, the 25

removal of the trustee from office under subsection (1)(b), make such further

or other order as the Accountant in Bankruptcy thinks fit.

(3A) The trustee, the commissioners or any creditor may apply to the Accountant in

Bankruptcy for a review of any decision of the Accountant in Bankruptcy

under subsection (1)(b) or (3). 30

(3B) An application under subsection (3A) must be made before the expiry of the

period of 14 days beginning with the day on which the decision is given.

(3C) If an application for a review under subsection (3A) is made, the Accountant in

Bankruptcy must—

(a) take into account any representations made by an interested person 35




28 days beginning with the day on which the application is made.”,

(e) for subsection (4), substitute— 40


“(4) The trustee, the commissioners or any creditor may appeal to the sheriff against

any decision of the Accountant in Bankruptcy under subsection (3C)(b) before

the end of the period of 14 days beginning with the date of the decision.”,

(f) in subsection (5), after “following” insert “a review under subsection (3A) or”,

(g) for subsection (6), substitute— 5

“(6) If the Accountant in Bankruptcy is satisfied that any of the circumstances

mentioned in subsection (9) apply, the Accountant in Bankruptcy may—

(a) declare the office of trustee to have become or to be vacant, and

(b) make any necessary order to enable the sequestration of the estate to

proceed or to safeguard the estate pending the election of a new trustee. 10

(6A) The declaration of the office of trustee as vacant and any necessary order in

accordance with subsection (6) may be made—

(a) on the application of—

(i) the commissioners,

(ia) the debtor, or 15

(ii) a creditor, or

(b) in any other case, where the Accountant in Bankruptcy is satisfied that

there are reasons to do so on the basis of the circumstances mentioned in

subsection (9).

(6B) The Accountant in Bankruptcy must order such intimation of an application by 20

a person mentioned in subsection (6A)(a) as the Accountant in Bankruptcy

considers necessary.

(6C) If the Accountant in Bankruptcy makes a declaration under subsection (6A),

the commissioners, or if there are no commissioners the Accountant in

Bankruptcy, must call a meeting of creditors for the election of a new trustee 25

by the creditors.

(6D) A meeting called under subsection (6C) must be held before the end of the

period of 28 days beginning with the date of the declaration under subsection

(6A).

(6E) The trustee, the debtor, the commissioners or any creditor may apply to the 30

Accountant in Bankruptcy for a review of any declaration or any order made

by the Accountant in Bankruptcy under subsection (6).

(6F) An application under subsection (6E) must be made before the expiry of the

period of 14 days beginning with the day on which the declaration is made.

(6G) If an application for a review under subsection (6E) is made, the Accountant in 35

Bankruptcy must—




(b) confirm, amend or revoke the declaration or order before the expiry of 40

the period of 28 days beginning with the day on which the application is

made.


(6H) The trustee, the debtor, the commissioners or any creditor may appeal to the

sheriff against any decision of the Accountant in Bankruptcy under subsection

(6G)(b) before the end of the period of 14 days beginning with the date of the

decision.

(6I) The Accountant in Bankruptcy may refer a case to the sheriff for a direction 5

before—

(a) making any order under subsection (1)(b) or (3),

(b) making any declaration or any order under subsection (6), or

(c) undertaking any review under this section.

(6J) An application for a review under subsection (3A) or (6E) may not be made in 10

relation to a matter on which the Accountant in Bankruptcy has applied to the

sheriff for a direction under subsection (6I).”.

(h) in subsection (7), for “(6)” substitute “(6C)”, and

(i) in subsection (10), after “trustee” insert “and is without prejudice to the powers

under section 1A(2)”. 15

29A Removal of commissioner

In section 30 of the 1985 Act (election, resignation and removal of commissioners)—

(a) in subsection (4), after paragraph (b) insert—

“(c) by order of the sheriff if the sheriff is satisfied that the commissioner is

no longer acting in the interests of the efficient conduct of the 20

sequestration.”, and


“(5) An order under subsection (4)(c) may be made on the application of—

(a) the Accountant in Bankruptcy,

(b) a person representing not less than one quarter in value of the creditors, 25

or

(c) the trustee.

(6) The sheriff must—

(a) order an application by a person mentioned in subsection (5) to be served

on the commissioner, 30

(b) order that the application is intimated to every creditor who has given a

mandate to the commissioner, and

(c) before deciding whether or not to make an order under subsection (4)(c),

give the commissioner the opportunity to make representations.

(7) On an application under subsection (4)(c), the sheriff may, in ordering the 35

removal of the commissioner from office, make such further order as the

sheriff thinks fit or may, instead of removing the commissioner from office,

make such other order as the sheriff thinks fit.

(8) The trustee, the Accountant in Bankruptcy, any commissioner or any creditor

may appeal against the decision of the sheriff on an application under 40

subsection (4)(c) within 14 days after the date of that decision.”.


30 Contractual powers of trustee

In section 42 of the 1985 Act (contractual powers of trustee), for subsection (2)

substitute—

“(2) The trustee must, within 28 days from the receipt by the trustee of a request in

writing from any party to a contract entered into by the debtor, adopt or refuse 5

to adopt the contract.

(2A) The period mentioned in subsection (2) may be extended—

(a) in a case where the Accountant in Bankruptcy is the trustee, by the

sheriff on the application of the Accountant in Bankruptcy,

(b) in any other case, by the Accountant in Bankruptcy on the application of 10

the trustee.

(2B) The trustee may, before the expiry of the period of 14 days beginning with the

day of the decision, apply to the Accountant in Bankruptcy for a review of a

decision of the Accountant in Bankruptcy under subsection (2A)(b).

(2C) If an application for a review under subsection (2B) is made, the Accountant in 15

Bankruptcy must—




(b) confirm, amend or revoke the decision before the expiry of the period of 20


(2D) The trustee may appeal to the sheriff against a decision by the Accountant in

Bankruptcy under subsection (2C)(b), before the expiry of the period of 14

days beginning with the day of the decision.

(2E) The Accountant in Bankruptcy may refer a case to the sheriff for a direction 25

before—

(a) making a decision under subsection (2A)(b), or

(b) undertaking any review under this section.

(2F) An application for a review under subsection (2B) may not be made in relation

to a matter on which the Accountant in Bankruptcy has applied to the sheriff 30

for a direction under subsection (2E).”.

31 Bankruptcy restrictions order

(1) For section 56A of the 1985 Act, substitute—

“56A Bankruptcy restrictions order

(1) Where sequestration of a living debtor’s estate is awarded, an order (to be 35

known as a “bankruptcy restrictions order”) in respect of the debtor may be

made by the—

(a) Accountant in Bankruptcy, or

(b) the sheriff.

(1A) A bankruptcy restrictions order may be made by the sheriff only on the 40

application of the Accountant in Bankruptcy.


(2) The Accountant in Bankruptcy must notify the debtor where the Accountant in

Bankruptcy proposes to make a bankruptcy restrictions order.

(3) A notice under subsection (2) must inform the debtor that the debtor has a right

to make representations to the Accountant in Bankruptcy in relation to the

proposed bankruptcy restrictions order. 5

(4) Before making a bankruptcy restrictions order the Accountant in Bankruptcy

must take into account any representations made by the debtor.”.

(2) In section 56B of the 1985 Act (grounds for making order)—

(a) for subsection (1), substitute—

“(1) A bankruptcy restrictions order must be made if the Accountant in Bankruptcy, 10

or as the case may be, the sheriff thinks it appropriate having regard to the

conduct of the debtor (whether before or after the date of sequestration).”,

(b) in subsection (2)—

(i) after “The”, where it first occurs, insert “Accountant in Bankruptcy, or as

the case may be, the”, and 15

(ii) after paragraph (b), insert—

“(ba) failing to supply accurate information to an authorised person for the

purpose of the granting under section 5B of a certificate for sequestration

of the debtor’s estate,”, and

(c) in subsection (3), after “The”, where it first occurs insert “Accountant in 20

Bankruptcy, or as the case may be, the”.

(3) In section 56C(1) of the 1985 Act (application of section 67(9)), after “the”, in the first

and second places where it occurs, insert “Accountant in Bankruptcy, or as the case may

be, the”.

(4) The title of section 56D of the 1985 Act becomes “Timing for making an order”. 25

(5) In section 56D of the 1985 Act—

(a) in subsection (1), for “An application for a bankruptcy restrictions order must be

made” substitute “The Accountant in Bankruptcy must make, or apply to the

sheriff for, a bankruptcy restrictions order”,

(b) for subsection (2), substitute— 30

“(2) After the end of the period referred to in subsection (1), the Accountant in

Bankruptcy may—

(a) make a bankruptcy restrictions order only with the permission of the

sheriff, and

(b) make an application for a bankruptcy restrictions order only with the 35

permission of the sheriff.”.

(6) In section 56E of the 1985 Act (duration of order and application for annulment)—

(a) for subsection (2), substitute—

“(2) The date specified in a bankruptcy restrictions order under subsection (1)(b)—

(a) in the case of an order made by the Accountant in Bankruptcy— 40

(i) must not be before the end of the period of 2 years beginning with

the date on which the order is made, but


(ii) must be before the end of the period of 5 years beginning with that

date, and

(b) in the case of an order made by the sheriff must not be—

(i) before the end of the period of 5 years beginning with the date on

which the order is made, or 5

(ii) after the end of the period of 15 years beginning with that date.”,

(b) in subsection (3), for “sheriff” substitute “person mentioned in subsection (4)”,

(c) after subsection (3), insert—

“(4) The person is—

(a) in the case of a bankruptcy restrictions order made by the Accountant in 10

Bankruptcy, the Accountant in Bankruptcy, and

(b) in the case of a bankruptcy restrictions order made by the sheriff, the

sheriff.

(6) If an application under subsection (3) is made to the Accountant in Bankruptcy,

the Accountant in Bankruptcy must— 15






(7) The debtor may appeal to the sheriff against any decision of the Accountant in

Bankruptcy under subsection (6)(b) before the end of the period of 14 days

beginning with the date of the decision.

(8) The sheriff may—

(a) in determining such an appeal, or 25

(b) otherwise on an application by the Accountant in Bankruptcy,

make an order providing that the debtor may not make another application

under subsection (3) for such period as may be specified in the order.”.

(7) In section 56F of the 1985 Act (interim bankruptcy restrictions order)—

(a) for subsections (1) and (2), substitute— 30

“(1) Subsection (2) applies at any time—

(a) after the Accountant in Bankruptcy notifies the debtor under section

56A(2) that the Accountant in Bankruptcy proposes to make a

bankruptcy restrictions order, and

(b) before the Accountant in Bankruptcy decides whether to make the order. 35

(2) The Accountant in Bankruptcy may make an interim bankruptcy restrictions

order if the Accountant in Bankruptcy thinks that—

(a) there are prima facie grounds to suggest that a bankruptcy restrictions

order will be made, and

(b) it is in the public interest to make an interim bankruptcy restrictions 40

order.


(2A) Subsection (2B) applies at any time between—

(a) the making of an application to the sheriff for a bankruptcy restrictions

order, and

(b) the determination of the application.

(2B) The sheriff may, on the application of the Accountant in Bankruptcy, make an 5

interim bankruptcy restrictions order if the sheriff thinks that—

(a) there are prima facie grounds to suggest that the application for the

bankruptcy restrictions order will be successful, and

(b) it is in the public interest to make an interim bankruptcy restrictions

order.”, 10

(b) subsection (3) is repealed, and


“(5) An interim order ceases to have effect—

(a) in the case of an interim order made by the Accountant in Bankruptcy,

on the Accountant in Bankruptcy deciding whether or not to make a 15

bankruptcy restrictions order,

(b) in the case of an interim order made by the sheriff, on the determination

of the application for the bankruptcy restrictions order, or

(c) if the sheriff discharges the interim order, on the application of the

Accountant in Bankruptcy or of the debtor.”. 20

(8) In section 56J of the 1985 Act (effect of recall of sequestration), after subsection (3)

insert—

“(4) Where an award of sequestration of a debtor’s estate is recalled under section

17E(1) or 17F(9)—

(a) the Accountant in Bankruptcy may annul any bankruptcy restrictions 25

order or interim bankruptcy restrictions order which is in force in respect

of the debtor, and

(b) no new bankruptcy restrictions order or interim bankruptcy restrictions

order may be made in respect of the debtor.

(5) Where the Accountant in Bankruptcy refuses to annul a bankruptcy restrictions 30

order or interim bankruptcy restrictions order under subsection (4) the debtor

may apply to the Accountant in Bankruptcy for a review of such a refusal.

(6) An application under subsection (5) must be made before the end of the period

of 14 days beginning with the day on which the award of sequestration is

recalled. 35


must—




(b) confirm the refusal or annul the order before the expiry of the period of



(8) The debtor may appeal to the sheriff against any decision of the Accountant in

Bankruptcy under subsection (7)(b) before the end of the period of 14 days

beginning with the date of the decision.

(9) The decision of the sheriff on an appeal under subsection (8) is final.”.

32 Conversion of protected trust deed into sequestration 5

(1) The title of section 59A of the 1985 Act becomes “Application for conversion to

sequestration”.

(2) In section 59A of the 1985 Act—


(i) for “petition the sheriff” substitute “apply to the Accountant in 10

Bankruptcy”, and

(ii) for “lodged in court in support of the petition” substitute “submitted to the

Accountant in Bankruptcy in support of the application”, and

(b) in subsection (2), for “petition” substitute “application”.

(3) In section 59B(1)(c) of the 1985 Act (contents of the affidavit), for “sheriff”, in both 15

places where it occurs, substitute “Accountant in Bankruptcy”.

(4) The title of section 59C of the 1985 Act becomes “Power of Accountant in

Bankruptcy”.

(5) In section 59C of the 1985 Act—

(a) for subsection (1), substitute— 20

“(1) The Accountant in Bankruptcy may, after considering an application for

conversion of a protected trust deed into a sequestration, make such order as

the Accountant in Bankruptcy thinks fit.”, and

(b) in subsections (2), (2A) and (3), for “sheriff”, in each place where it occurs,

substitute “Accountant in Bankruptcy”. 25

33 Power to cure defects in procedure

(1) The title of section 63 of the 1985 Act becomes “Power of court to cure defects in

procedure”.

(2) In section 63 of the 1985 Act—

(a) after subsection (1), insert— 30

“(1A) An order under subsection (1) may waive a failure to comply with a

requirement mentioned in section 63A(1)(a) or (b) only if the failure relates

to—

(a) a document to be lodged with the sheriff,

(b) a document issued by the sheriff, or 35

(c) a time limit specified in relation to proceedings before the sheriff or a

document relating to those proceedings.”, and

(b) in subsection (2)(b) after “estate” insert “the Accountant in Bankruptcy or”.



“63A Power of Accountant in Bankruptcy to cure defects in procedure

(1) The Accountant in Bankruptcy may make an order—

(a) correcting a clerical or incidental error in a document required by or

under this Act, or

(b) waiving a failure to comply with a time limit— 5

(i) which is specified by or under this Act, and

(ii) for which no provision is made by or under this Act.

(2) An order under subsection (1) may be made—

(a) on the application of any person having an interest, or

(b) without an application if the Accountant in Bankruptcy proposes to 10

correct or waive a matter mentioned in subsection (1).

(3) The applicant must notify all interested persons where an application is made

under subsection (2)(a).

(4) The Accountant in Bankruptcy must notify all interested persons where the

Accountant in Bankruptcy proposes to make an order by virtue of subsection 15

(2)(b).

(5) A notice under subsection (3) or (4) must inform the recipient that the person

has a right to make representations to the Accountant in Bankruptcy in relation

to the application or the proposed order before the expiry of the period of 14

days beginning with the day on which the notice is given. 20

(6) Before making an order under subsection (1), the Accountant in Bankruptcy

must take into account any representations made by an interested person.

(7) An order under subsection (1) may—

(a) so far as practicable, restore any person prejudiced by the error or failure

to the position that person would have been in but for the error or failure, 25

(b) impose such conditions, including conditions as to expenses, as the

Accountant in Bankruptcy thinks fit.

(8) After making an order which affects a matter which is recorded in the Register

of Inhibitions, the Accountant in Bankruptcy must without delay send a

certified copy of the order to the Keeper of that register for recording in that 30

register.

63B Decision under section 63A: review

(1) An interested person may apply to the Accountant in Bankruptcy for a review

of a decision of the Accountant in Bankruptcy to make, or refuse to make, an

order under section 63A(1). 35


period of 14 days beginning with the day of the decision.


must—







(4) An interested person may appeal to the sheriff against a decision by the


period of 14 days beginning with the day of the decision. 5

(5) The decision of the sheriff on an appeal under subsection (4) is final.”.

34 Regulations: applications to Accountant in Bankruptcy etc.

After section 71B of the 1985 Act, insert—

“71C Regulations: applications to Accountant in Bankruptcy etc.

(1) The Scottish Ministers may, by regulations, make provision in relation to the 10

procedure to be followed in relation to—

(a) an application to the Accountant in Bankruptcy under this Act,

(b) an application to the Accountant in Bankruptcy for a review under this

Act,

(c) any other decision made by the Accountant in Bankruptcy under this 15

Act.

(2) In this section “decision” includes any appointment, determination, direction,

award, acceptance, rejection, adjudication, requirement, declaration, order or

valuation made by the Accountant in Bankruptcy.

(3) Regulations under subsection (1) may in particular make provision for or in 20

connection with—

(a) the procedure to be followed by the person making an application,

(b) the form of any report or other document that may be required for the

purposes of an application or a decision,

(c) the form of a statement of undertakings that must be given by the debtor 25

when making a debtor application,

(d) time limits applying in relation to the procedure,

(e) the procedure to be followed in connection with the production and

recovery of documents relating to an application or a decision,

(f) the procedure to be followed (including provision about those entitled to 30

participate) in determining an application or making a decision, and

(g) the procedure to be followed after an application is determined or a

decision is made.

(4) Regulations under subsection (1) may—

(a) include such supplementary, incidental or consequential provision as the 35

Scottish Ministers consider appropriate,

(b) modify any enactment (including this Act).”.

35 Valuation of debts depending on contingency

In paragraph 3 of Schedule 1 to the 1985 Act (debts depending on contingency)—


(a) in sub-paragraph (2), for “sheriff”, in both places where it occurs, substitute

“Accountant in Bankruptcy”, and

(b) for sub-paragraph (3), substitute—

“(3) An interested person may apply to the Accountant in Bankruptcy for a review

of a valuation under sub-paragraph (2) by the trustee. 5

(4) An application under sub-paragraph (3) must be made before the expiry of the

period of 14 days beginning with the day of the valuation.


must—




(b) confirm or vary the valuation before the expiry of the period of 28 days


(6) An interested person may appeal to the sheriff against a decision by the 15



(7) The Accountant in Bankruptcy may refer a case to the sheriff for a direction

before making a decision under sub-paragraph (5)(b).

(8) An appeal to the sheriff under sub-paragraph (6) may not be made in relation to 20

a matter on which the Accountant in Bankruptcy has applied to the sheriff for a

direction under sub-paragraph (7).”.

Review of decisions made by Accountant in Bankruptcy

36 Review of decisions about interim trustee

(1) In section 13A of the 1985 Act (termination of interim trustee’s functions when interim 25

trustee is not appointed as trustee)—


“(10A) The interim trustee or any person mentioned in subsection (4)(b) may apply to

the Accountant in Bankruptcy for a review of a determination under subsection

(10). 30


period of 14 days beginning with the day on which the determination is issued

under subsection (10).

(10C) If an application under subsection (10A) is made, the Accountant in





(b) confirm, amend or revoke the determination under subsection (10) before

the expiry of the period of 28 days beginning with the day on which the 40

application is made.”, and

(b) for subsection (11), substitute—


“(11) The interim trustee or any person mentioned in subsection (4)(b) may appeal to

the sheriff against a decision by the Accountant in Bankruptcy under

subsection (10C)(b) before the expiry of the period of 14 days beginning with

the day of the decision.”.

(2) In section 13B of the 1985 Act (termination of Accountant in Bankruptcy's functions as 5

interim trustee where not appointed as trustee)—

(a) in subsection (5), after paragraph (a) insert—

“(aa) that an application for a review may be made under subsection (6A)”,


“(6A) The debtor, the petitioner or any creditor may apply to the Accountant in 10

Bankruptcy for a review of the discharge of the Accountant in Bankruptcy in

respect of the Accountant in Bankruptcy’s actings as interim trustee.


period of 14 days beginning with the day on which notice is sent under

subsection (4)(a)(iii) or (b). 15

(6C) If an application for a review under subsection (6A) is made, the Accountant in

Bankruptcy must—




(b) confirm or revoke the discharge before the expiry of the period of 28

days beginning with the day on which the application is made.”, and


“(7) The debtor, the petitioner or any creditor may appeal to the sheriff against—

(a) the determination of the Accountant in Bankruptcy mentioned in 25

subsection (4)(a)(ii) before the expiry of the period of 14 days beginning

with the day on which notice is sent under subsection (4)(a)(iii) or (b),

(b) a decision by the Accountant in Bankruptcy under subsection (6C)(b)

before the expiry of the period of 14 days beginning with the day of the

decision. 30

(7A) The sheriff clerk must, following an appeal, send a copy of the decree to the


(3) In section 18 of the 1985 Act (interim preservation of estate)—


“(3A) Where the Accountant in Bankruptcy is the interim trustee, the debtor may 35

apply to the Accountant in Bankruptcy for a review of a direction under

subsection (1) on the ground that the direction is unreasonable.

(3B) If an application under subsection (3A) is made, the Accountant in Bankruptcy

must—





(b) confirm, amend or revoke the direction (whether or not substituting a

new direction) before the expiry of the period of 28 days beginning with

the day on which the application is made.

(3C) The sheriff may, on an application by the debtor made before the expiry of the

period of 14 days beginning with the day on which the Accountant in 5

Bankruptcy makes a decision under subsection (3B)(b)—

(a) set aside a direction under subsection (1) or (3B)(b) if the sheriff

considers it to be unreasonable, and

(b) in any event, give such directions to the debtor regarding the

management of the debtor’s estate as the sheriff considers appropriate. 10

(3D) The debtor must comply with a direction—

(a) under subsection (1) pending a decision by the Accountant in

Bankruptcy under subsection (3B)(b),

(b) under subsection (3B)(b) pending the final determination of any appeal

(subject to any interim order of the sheriff).”, 15

(b) in subsection (4), at the beginning insert “Where the Accountant in Bankruptcy is

not the interim trustee,”, and

(c) in subsection (5)(a)(i), after “(1)” insert “, (3B)(b), (3C)(b)”.

37 Review of decision not to award sequestration

In section 15 of the 1985 Act (further provisions relating to award of sequestration), for 20

subsection (3A) substitute—

“(3A) If, following a debtor application, the Accountant in Bankruptcy refuses to

award sequestration, the debtor or a creditor concurring in the application may

apply to the Accountant in Bankruptcy for a review of the refusal.

(3B) An application under subsection (3A) must be made before the expiry of the 25

period of 14 days beginning with the day on which the Accountant in

Bankruptcy refuses to award sequestration.

(3C) If an application under subsection (3A) is made, the Accountant in Bankruptcy

must—




(b) confirm the refusal or award sequestration before the expiry of the period

of 28 days beginning with the day on which the application is made.

(3D) If the Accountant in Bankruptcy confirms the refusal to award sequestration 35

under subsection (3C)(b), the debtor or a creditor concurring in the application

may, before the expiry of the period of 14 days beginning with the day of that

confirmation, appeal to the sheriff.”.

38 Review of decisions about replacement trustee

(1) In section 26A of the 1985 Act (Accountant in Bankruptcy to account for 40

intromissions)—

(a) in subsection (4)(b), after paragraph (ii) insert—


“(iia) that an application for a review may be made under subsection (4A)”,


“(4A) The replacement trustee, the debtor or any creditor may apply to the

Accountant in Bankruptcy for a review of the discharge of the Accountant in

Bankruptcy in respect of the Accountant in Bankruptcy’s actings as trustee. 5



subsection (4)(b).


must— 10





days beginning with the day on which the application is made.”, 15


“(5) The replacement trustee, the debtor or any creditor may appeal to the sheriff

against—

(a) the determination of the Accountant in Bankruptcy mentioned in

subsection (3)(b) before the expiry of the period of 14 days beginning 20

with the day on which notice is sent under subsection (4)(b),

(b) a decision by the Accountant in Bankruptcy under subsection (4C)(b)


which the decision is made.”, and

(d) for subsection (6), substitute— 25

“(6) The decision of the sheriff on an appeal under subsection (5) is final.”.

(2) In section 27 of the 1985 Act (discharge of original trustee)—


“(3A) The original trustee, the replacement trustee, the debtor or any creditor who has

made representations may apply to the Accountant in Bankruptcy for a review 30

of a determination under subsection (3).


period of 14 days beginning with the day on which the determination is issued

under subsection (3).

(3C) If an application under subsection (3A) is made, the Accountant in Bankruptcy 35

must—




(b) confirm, amend or revoke the determination under subsection (3) 40

(whether or not granting a certificate of discharge) before the expiry of

the period of 28 days beginning with the day on which the application is

made.”, and


(b) in subsection (4), for “issuing of the determination under subsection (3) above”

substitute “day of the decision under subsection (3C)(b)”.

39 Review of decisions about adjudication of creditor’s claims

In section 49 of the 1985 Act (adjudication of claims)—

(a) for subsection (6), substitute— 5

“(6) The debtor or any creditor may apply to the Accountant in Bankruptcy for a

review of—

(a) the acceptance or rejection of any claim, or

(b) a decision in respect of any matter requiring to be specified under

subsection (5)(a) or (b).”, 10

(b) for subsection (6A), substitute—

“(6A) The debtor may make an application under subsection (6) only if the debtor

satisfies the Accountant in Bankruptcy that the debtor has, or is likely to have,

a pecuniary interest in the outcome of the review.

(6B) An application under subsection (6) must be made— 15

(a) in the case of a review relating to an acceptance or rejection under

subsection (1), before the expiry of the period of 14 days beginning with

the day of that decision, and

(b) in the case of a review relating to an acceptance or rejection under

subsection (2), before the expiry of the period of 28 days beginning with 20

the day of that decision.

(6C) If an application under subsection (6) is made, the Accountant in Bankruptcy

must—






(6D) The debtor or any creditor may appeal to the sheriff against a decision by the

Accountant in Bankruptcy under subsection (6C)(b) before the expiry of the 30


(6E) The debtor may appeal under subsection (6D) only if the debtor satisfies the

sheriff that the debtor has, or is likely to have, a pecuniary interest in the

outcome of the appeal.”.

40 Review of decision about discharge of trustee 35

(1) In section 57 of the 1985 Act (discharge of trustee)—


“(3A) A certificate of discharge granted under subsection (3)—

(a) must take effect after the expiry of the period mentioned in subsection

(3C), and 40


(b) has no effect if an application for review is made under subsection (3B).

(3B) The trustee, the debtor or any creditor who has made representations under

subsection (2)(a) may apply to the Accountant in Bankruptcy for a review of a

determination under subsection (3).

(3C) An application under subsection (3B) must be made before the expiry of the 5

period of 14 days beginning with the day of the determination.

(3D) If an application for a review under subsection (3B) is made, the Accountant in

Bankruptcy must—




(b) confirm, amend or revoke the determination (whether or not issuing a

new certificate of discharge) before the expiry of the period of 28 days

beginning with the day on which the application is made.”, and

(b) in subsection (4), for “the issuing of the determination under subsection (3) 15

above” substitute “a decision by the Accountant in Bankruptcy under subsection

(3D)(b)”.

(2) In section 58A of the 1985 Act (discharge of Accountant in Bankruptcy)—

(a) in subsection (4)(b), after paragraph (ii) insert—

“(iia) that an application for a review may be made under subsection (4A)”, 20


“(4A) The debtor or any creditor may apply to the Accountant in Bankruptcy for a

review of the discharge of the Accountant in Bankruptcy in respect of the

Accountant in Bankruptcy’s actings as trustee.

(4B) An application under subsection (4A) must be made before the expiry of the 25


subsection (4)(b).


must—





days beginning with the day on which the application is made.”,

(c) for subsection (5), substitute— 35

“(5) The debtor or any creditor may appeal to the sheriff against a decision by the

Accountant in Bankruptcy under subsection (4C)(b) before the expiry of the

period of 14 days beginning with the day on which the decision is made.”, and

(d) for subsection (6), substitute—

“(6) The decision of the sheriff on an appeal under subsection (5) is final.”. 40

40A Appeals against decisions on review

After section 63B of the 1985 Act insert—


“63C Review of decisions by Accountant in Bankruptcy: grounds of appeal

(1) For the avoidance of doubt, an appeal under a provision mentioned in

subsection (2) may be made on—

(a) a matter of fact,

(b) a point of law, or 5

(c) the merits.

(2) The provisions are—

(a) section 3A(7),

(b) section 13A(11),

(c) section 13B(7), 10

(d) section 15(3D),

(e) section 17H(5),

(f) section 25A(8),

(g) section 26A(5),

(h) section 27(4), 15

(i) section 28B(4),

(j) section 29(4),

(k) section 29(6H),

(l) section 32BA(5),

(m) section 32G(5), 20

(n) section 42(2D),

(o) section 49(6D),

(p) section 54B(6),

(q) section 54G(6),

(r) section 56J(8), 25

(s) section 57(4),

(t) section 58A(5),

(u) section 63B(4),

(v) paragraph 3(6) of Schedule 1.”

Miscellaneous amendments 30

40B Representation of Accountant in Bankruptcy in sheriff court

After section 1C of the 1985 Act insert—

“1D Conduct of proceedings in the sheriff court

(1) A person authorised by the Accountant in Bankruptcy may conduct civil

proceedings in the sheriff court in relation to a function of the Accountant in 35

Bankruptcy (including the functions listed in section 1A).


(2) In subsection (1), “civil proceedings” are proceedings which are not in respect

of an offence.”.

41 Failure to send statements of assets and liabilities


5 (a) in subsection (9)—

(i) paragraph (a) and the word “or” immediately following it are repealed, and

(ii) in paragraph (b), for “such statement of assets and liabilities” substitute “a

statement of assets and liabilities sent to the Accountant in Bankruptcy in

accordance with subsection (6A)”, and

10 (b) in subsection (10), paragraph (a) and the word “or” immediately following it are

repealed.

(2) In section 19 of the 1985 Act (statement of assets and liabilities etc.)—


(i) paragraph (a) is repealed, and

15 (ii) in paragraph (b), for “such statement of assets and liabilities” substitute “a

statement of assets and liabilities sent to the trustee in accordance with

subsection (1) or (2)”, and

(b) in subsection (4), paragraph (a) and the word “or” immediately following it are

repealed.

20

42 Time limits for sequestration of limited partnership

(1) In section 8 of the 1985 Act (further provisions relating to presentation of petitions), for

subsection (2) substitute—

“(2) A petition for the sequestration of the estate of a limited partnership may be

presented—

25 (a) by a qualified creditor or qualified creditors only if the apparent

insolvency founded on in the petition was constituted within 4 months

(or such other period as may be prescribed) before the date of

presentation of the petition, or

(b) at any time by—

30 (i) a temporary administrator,

(ii) a member State liquidator appointed in main proceedings, or

(iii) a trustee acting under a trust deed.”.

(2) In section 8A of the 1985 Act (further provisions relating to debtor applications), for

subsection (2) substitute—

35 “(2) A debtor application made in relation to the estate of a limited partnership may

be made—

(a) at any time, or

(b) within such time as may be prescribed.”.


43 Petition for sequestration by trustee under trust deed

In section 12(3) of the 1985 Act (conditions for sheriff to award sequestration), for

paragraph (e) substitute—

“(e) that, in the case of a petition by a trustee—

(i) one or more of the conditions in section 5(2C)(a) applies, or 5

(ii) the petition includes an averment in accordance with section

5(2C)(b),”.

44 Effect of sequestration: renewal of period of inhibition etc.

In section 14 of the 1985 Act (registration of warrant or determination of debtor

application), for subsection (4) substitute— 10

“(4) The trustee may, if not discharged, send a memorandum in a form prescribed

by the Court of Session by act of sederunt to the Keeper of the Register of

Inhibitions for recording in that register before the expiry of—

(a) the period of 3 years mentioned in subsection (3)(b), or

(b) a period for which the effect mentioned in subsection (2) has been 15

renewed by virtue of subsection (4A).

(4A) The recording of a memorandum sent in accordance with subsection (4) renews

the effect mentioned in subsection (2) for a period of 3 years beginning with

the expiry of—

(a) the period mentioned in subsection (3)(b), or 20

(b) as the case may be, the period mentioned in subsection (4)(b).

(4B) The trustee may, if appointed or reappointed under section 58B, send a

memorandum in a form prescribed by the Court of Session by act of sederunt

to the Keeper of the Register of Inhibitions for recording in that register before

the expiry of that appointment. 25

(4C) The recording of a memorandum sent in accordance with subsection (4B)

imposes the effect mentioned in subsection (2) for a period of 3 years

beginning with the day of notification in accordance with section 58C(1).”.

45 Division and sale of debtor’s family home

In section 40 of the 1985 Act (power of trustee in relation to the debtor’s family 30

home)—

(a) in subsection (1)(b), after “subsection (2)” insert “or, as the case may be,

subsection (3)”, and

(b) in subsection (3A), for “subsection (1)(b)” substitute “subsection (2) or (3)”.

46 Effect of discharge of debtor 35

In section 55 of the 1985 Act (effect of discharge under section 54 or 54A), after

subsection (3) insert—

“(4) Nothing in this section affects regulations in relation to which section 73B of

the Education (Scotland) Act 1980 (c.44) (regulations relating to student loans)

applies.”. 40


47 Offence of obtaining credit: increase in amount

In section 67(9)(a) of the 1985 Act (offence of obtaining credit above certain amount

without giving information as to status etc.), for “£500” substitute “£2000”.

48 Bankruptcy restrictions undertaking: repeal

Section 56G of the 1985 Act (which makes provision about bankruptcy restrictions 5

undertakings) is repealed.

48A Debt arrangement schemes: extension to non-natural persons and fees

(1) The Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) is amended as

follows.

(2) In section 1 (debt arrangement scheme), for “individuals” substitute “persons”. 10

(3) In section 7(2) (debt payment programmes: power to make further provision), after

paragraph (ua) insert—

“(ub) the remuneration of payments distributors and money advisers,”.

(4) Section 9(2) is repealed.

General 15

49 Meaning of “the 1985 Act”

In this Act, “the 1985 Act” means the Bankruptcy (Scotland) Act 1985 (c.66).

50 Ancillary provision

(1) The Scottish Ministers may by order make such supplementary, incidental,

consequential, transitional or transitory provision or savings as they consider necessary 20

or expedient for the purposes of, or in connection with, any provision made by or under

this Act.

(2) The power of Scottish Ministers to make an order under subsection (1) includes power

to make different provision for different purposes.

(3) An order under subsection (1) may modify any enactment (including this Act). 25

(4) An order under subsection (1) containing provisions which add to, replace or omit any

part of the text of an Act is subject to the affirmative procedure.

(5) Otherwise, an order under subsection (1) is subject to the negative procedure.

51 Minor and consequential amendments and repeals

(1) Schedule 3 contains minor amendments and amendments consequential on the 30

provisions of this Act.

(2) The enactments mentioned in the first column of schedule 4 (which include enactments

that are spent) are repealed to the extent set out in the second column.

52 Commencement

(1) This section and sections 49, 50 and 53 come into force on the day after Royal Assent. 35


(2) The other provisions of this Act come into force on such day as the Scottish Ministers

may by order appoint.

(3) An order under subsection (2) may contain transitory or transitional provision or

savings.

53 Short title 5

The short title of this Act is the Bankruptcy and Debt Advice (Scotland) Act 2014.


Schedule 1—Schedule A1 to the 1985 Act

SCHEDULE 1 (introduced by section 5(2))

SCHEDULE A1 TO THE 1985 ACT

This is the Schedule that is to be inserted as Schedule A1 to the 1985 Act—

“SCHEDULE A1 5

(introduced by section 5(2ZE))

DEBTOR TO WHOM SECTION 5(2ZA) APPLIES: APPLICATION OF ACT

Modification of certain provisions of Act

1 (1) Where section 5(2ZA) applies in relation to a debtor, this Act applies subject to

the modifications mentioned in sub-paragraphs (2) to (5). 10

(2) Section 3(1) applies as if paragraphs (e) and (f) were omitted.

(3) Section 20 applies as if for subsection (1) there were substituted—

“(1) This section applies where the Accountant in Bankruptcy receives by virtue of

section 5(6A) the statement of assets and liabilities in relation to a debtor to

whom section 5(2ZA) applies. 15

(1A) As soon as practicable, the Accountant in Bankruptcy must prepare a statement

of the debtor’s affairs so far as within the knowledge of the Accountant in

Bankruptcy stating that, because section 5(2ZA) applies to the debtor, no

claims may be submitted by creditors under section 22 or 48.

(1B) The Accountant in Bankruptcy must send a copy of the statement prepared 20

under subsection (1A) to every known creditor of the debtor.”.

(4) Section 43A applies as if for subsection (2) there were substituted—

“(2) The Accountant in Bankruptcy may at any time before the discharge of the

debtor require the debtor to give an account in writing, in such form as may be

prescribed, of the debtor’s current state of affairs.”. 25

(4A) Section 58A applies as if—

(a) subsections (3) to (4C) and (7)(a) were omitted, and

(b) for subsection (5) there were substituted—

“(5) The debtor or any creditor may, before the expiry of the period of 14 days

beginning with the day on which the debtor is discharged under section 54C(1), 30

appeal to the sheriff against the discharge of the Accountant in Bankruptcy in

respect of the Accountant in Bankruptcy’s actings as trustee.”.

(5) Sections 21A, 22, 23, 24, 25, 26 to 27, 48, 52 and 62(2A) do not apply.

Accountant in Bankruptcy’s duty to consider whether paragraph 1 should cease to apply

2 (1) This paragraph applies where paragraph 1 applies in relation to a debtor. 35

(2) If the Accountant in Bankruptcy considers that the circumstances mentioned in

any of sub-paragraphs (3) to (6) apply in relation to the debtor, the Accountant

in Bankruptcy must consider whether paragraph 1 should cease to apply in

relation to the debtor.




(a) the Accountant in Bankruptcy becomes aware that the debtor application

submitted under section 5 contains an error, and

(b) the nature of the error is such that the debtor was not at that time a debtor

to whom section 5(2ZA) applies. 5


(a) the Accountant in Bankruptcy becomes aware that the debtor application

submitted under section 5 deliberately misrepresents or fails to state a

fact that was the case at the time of the application, and

(b) the nature of the misrepresentation or the omission of the fact is such that 10

the debtor was not at that time a debtor to whom section 5(2ZA) applies.

(5) The circumstances are that, at any time after the date on which the debtor

application is made—

(a) the total value of the debtor’s assets (leaving out of account any

liabilities and any assets that would not vest in a trustee under section 15

33(1)) exceeds £5000 (or such other amount as may be prescribed), or

(b) the Accountant in Bankruptcy assesses the debtor under the common

financial tool as being able to make a contribution.

(6) The circumstances are that, at any time after the date of sequestration—

(a) the Accountant in Bankruptcy is not satisfied that the debtor has co-20

operated with the trustee, and

(b) the Accountant in Bankruptcy considers that it would be of financial

benefit to the estate of the debtor and in the interests of the creditors if

paragraph 1 were to cease to have effect.

(7) The Scottish Ministers may by regulations modify this paragraph— 25

(a) by modifying the circumstances in which paragraph 1 ceases to have

effect,

(b) in consequence of any modification made under paragraph (a).

Procedure where Accountant in Bankruptcy considers paragraph 1 should cease to

apply 30

3 (1) If the Accountant in Bankruptcy considers under paragraph 2(2) that paragraph

1 should cease to apply in relation to a debtor, the Accountant in Bankruptcy

must notify the debtor of that fact and the matters mentioned in sub-paragraph

(2).

(2) The matters are— 35

(a) the circumstances mentioned in paragraph 2 which the Accountant in

Bankruptcy considers apply in relation to the debtor, and

(b) that the debtor may make representations to the Accountant in

Bankruptcy within the period of 14 days beginning with the giving of

notification under sub-paragraph (1). 40



(3) On the expiry of the period mentioned in sub-paragraph (2)(b) and after having

taken into account any representations made by the debtor under that sub-

paragraph, the Accountant in Bankruptcy must decide whether paragraph 1

should cease to apply in relation to the debtor.

(4) If the Accountant in Bankruptcy decides that paragraph 1 should cease to apply 5

in relation to the debtor, the Accountant in Bankruptcy must, as soon as

practicable after reaching that decision, give notice in writing to the debtor of

the decision and the effect of it.

Debtor’s right of appeal against decision under paragraph 3

4 (1) This paragraph applies where the Accountant in Bankruptcy gives notice to a 10

debtor under paragraph 3(4).

(2) The debtor may appeal to the sheriff against the decision.

(3) An appeal must be lodged not later than 14 days after the day on which notice

is given.

(4) If the sheriff grants the appeal, paragraph 1 continues to apply in relation to the 15

debtor.

(5) If the sheriff refuses the appeal or if it is abandoned or withdrawn, paragraph 1

ceases to apply in relation to the debtor.

Decision that paragraph 1 ceases to have effect: modification of certain provisions of

Act 20

5 (1) Where paragraph 1 ceases to have effect in relation to a debtor, this Act applies

subject to sub-paragraphs (2) to (4).

(2) The debtor must send to the trustee a statement of assets and liabilities—

(a) where no appeal is taken under paragraph 4, before the expiry of the

period of 7 days beginning with the expiry of the period during which an 25

appeal may be made under that paragraph,

(b) where an appeal is refused or, as the case may be, abandoned or

withdrawn, before the expiry of the period of 7 days beginning with the

day on which notice is given of the outcome of the appeal or, as the case

may be, its abandonment or withdrawal. 30

(3) Section 21A applies as if in subsection (2), for “sequestration is awarded” there

were substituted “paragraph 1 of Schedule A1 ceases to have effect in relation

to the debtor”.

(4) Section 43A applies as if for subsection (2) there were substituted—

“(2) The trustee must require the debtor to give an account in writing, in such form 35

as may be prescribed, of the debtor’s current state of affairs—

(a) before the expiry of the period of 60 days beginning with the day on

which paragraph 1 of Schedule A1 ceases to have effect in relation to the

debtor,

(b) on the expiry of the period of 6 months beginning with the day on which 40

the account is given under paragraph (a), and

(c) on the expiry of each subsequent period of 6 months.”.”.


Schedule 2—Information to be included in the sederunt book


INFORMATION TO BE INCLUDED IN THE SEDERUNT BOOK

This is the Schedule that is to be inserted as Schedule 3A to the 1985 Act—

“SCHEDULE 3A 5

(introduced by section 62(2A))

INFORMATION TO BE INCLUDED IN THE SEDERUNT BOOK

1 A copy of a debtor application made under section 5(2)(a).

2 A copy of a petition presented under section 5(2)(b).

3 Where the trustee is the Accountant in Bankruptcy, a copy of a statement of 10

assets and liabilities sent to the Accountant in Bankruptcy in accordance with

section 5(6A).

4 A copy of an award of sequestration granted under section 12(1) or (3).

5 A copy of a warrant to cite the debtor granted under section 12(2).

6 Where the trustee is not the Accountant in Bankruptcy— 15

(a) the audited accounts sent to the trustee by the Accountant in Bankruptcy

in accordance with section 13A(5)(d), and

(b) the determination fixing the amount of the outlays and remuneration

payable to the interim trustee sent to the trustee by the Accountant in

Bankruptcy in accordance with section 13A(5)(d). 20

7 Where the trustee is the Accountant in Bankruptcy—

(a) the accounts audited by the Accountant in Bankruptcy in accordance

with section 13A(5)(a), and

(b) the determination fixing the amount of the outlays and remuneration

payable to the interim trustee issued in accordance with section 25

13A(5)(b).

8 Where the Accountant in Bankruptcy is appointed as interim trustee and the

sheriff awards sequestration in accordance with section 13B(1)(a)—

(a) the accounts of the Accountant in Bankruptcy’s intromissions (if any)

with the debtor's estate;, and 30

(b) the determination of the Accountant in Bankruptcy’s fees and outlays

calculated in accordance with regulations made under section 69A.

9 A copy of any—

(a) order recalling or refusing to recall an award of sequestration by the

sheriff under section 17 and sent to the trustee under section 17(8)(b)(ii), 35

(c) grant or refusal to grant a recall of an award of sequestration under

section 17E(1), 17F(9) or 17H.

10 A copy of any order under section 41(1)(b)(ii) or 41A(1)(b)(ii) sent to the

trustee under section 17(8)(b).



11 Where the trustee is a replacement trustee appointed under section 25 and the

Accountant in Bankruptcy was not the original trustee—

(a) a copy of any determination fixing the amount of the outlays and

remuneration payable to the original trustee and of the original trustee’s

audited accounts which is sent to the trustee under section 26(3)(b)(ii), 5

(b) upon appointment, such information as is appropriate to provide a record

of the sequestration process before the trustee’s appointment as

replacement trustee (except that no entry is to be made in relation to any

written comments made by the original trustee under section 20(2)), and

(c) an entry recording any certificate of discharge issued to the original 10

trustee under section 27.

12 Where the trustee is not the Accountant in Bankruptcy, a copy of a statement of

assets and liabilities sent to the trustee under section 19(1) or (2).

13 A copy of a notice given under section 21A(2).

14 Where the trustee is not the Accountant in Bankruptcy, a copy of a report made 15

under section 21B(1)(a).

15 Where the trustee is a replacement trustee appointed under section 25 and the

Accountant in Bankruptcy was the original trustee, upon appointment, such

information as is appropriate to provide a record of the sequestration process

before the trustee’s appointment as replacement trustee. 20

16 A copy of any initial proposal for the debtor’s contribution provided by the

trustee under section 32A(1)(b).

17 A copy of a debtor contribution order applying to the debtor.

18 A copy of any decree issued under section 34 affecting the sequestrated estate.

19 A copy of any decree of recall issued following an application under section 25

35(2).

20 A copy of any decree issued under section 36 affecting the sequestrated estate.

21 The inventory and valuation of the estate made up and maintained in

accordance with section 38(1)(b).

22 A copy of an account given by the debtor under section 43A(2). 30

23 The debtor’s deposition at an examination subscribed under section 47(5).

24 A copy of the record of an examination sent to the Accountant in Bankruptcy

under section 47(6).

25 An appropriate entry in relation to the production of any document to the

trustee in accordance with section 48(7), stating the date when it was produced 35

to the trustee.

26 Where the trustee accepts or rejects a claim under section 49, the decision on

the claim, specifying—

(a) the amount of the claim accepted by the trustee,

(b) the category of debt, and the value of any security, as decided by the 40

trustee, and

(c) if the claim is rejected, the reasons.



27 A copy of a decision of the Accountant in Bankruptcy under section 49(6C)(b)

and of the sheriff under section 49(6D).

28 An agreement or determination in respect of the accounting period under

section 52(2)(b)(i) or (ii).

29 Where the trustee is not the Accountant in Bankruptcy, the audited accounts, 5

the scheme of division and the final determination in relation to the trustee’s

outlays and remuneration, as mentioned in section 53.

30 A copy the certificate of discharge given to the debtor under section 54(2) or

54A(2) or 54F.

31 A copy the certificate deferring discharge where the debtor cannot be traced 10

issued under section 54D(4)(b) or (6)(b).

32 Where the Accountant in Bankruptcy has acted as trustee, after making the

final division of the debtor’s estate—

(a) the Accountant in Bankruptcy’s final accounts of the Accountant in

Bankruptcy’s intromissions (if any) with the debtor’s estate, 15

(b) the scheme of division (if any), and

(c) a determination of the Accountant in Bankruptcy’s fees and outlays

calculated in accordance with regulations made under section 69A.

33 Where the Accountant in Bankruptcy has acted as trustee and is discharged

from all liability as mentioned in section 58A(7), an appropriate entry in 20

relation to such discharge.

34 A decision of the court under section 63 and of the Accountant in Bankruptcy

under section 63A.

35 A copy of a decree arbitral or, as the case may be, an appropriate entry

recording the compromise referred to in section 65. 25

36 The minutes of the meeting mentioned in paragraph 7 of Schedule 6.

37 A copy of the minutes of any meeting sent to the Accountant in Bankruptcy in

accordance with paragraph 16 of Schedule 6.

38 Where a meeting of commissioners is called in accordance with paragraph 17

of Schedule 6— 30

(a) a record of the deliberations of the commissioners at the meeting,

(b) where the trustee is not clerk in accordance with paragraph 21 of

Schedule 6, a record of the deliberations of the commissioners

transmitted by the commissioner acting as clerk, such commissioner to

authenticate the insertion when made, and 35

(c) in relation to any matter agreed without a meeting, the minute recording

that agreement signed in accordance with paragraph 23 of Schedule 6.”.

39 A copy of any decision (including any determination, direction, award,

acceptance, rejection, adjudication, requirement, declaration, order or

valuation) relating to the sequestration which is— 40

(a) issued by the Accountant in Bankruptcy, and

(b) not otherwise mentioned in this Schedule.


Schedule 3—Minor and consequential amendments

40 A copy of any decree, interlocutory decree, direction or order relating to the

sequestration which is—

(a) granted by the court, and

(b) not otherwise mentioned in this Schedule.”.

SCHEDULE 3 5

(introduced by section 51(1))

MINOR AND CONSEQUENTIAL AMENDMENTS

Sheriff Courts (Scotland) Act 1971 (c.58)

A1 In section 32(1)(m) of the Sheriff Courts (Scotland) Act 1971 (appearance before a

sheriff under the 1985 Act), after “sequestration)” insert “or section 54B(6) of that Act 10

(appeal following review of discharge decision)”.

Bankruptcy (Scotland) Act 1985 (c.66)

1 The Bankruptcy (Scotland) Act 1985 Act is amended as follows.

2 In section 1A(1)(b) (register of insolvencies)—

(a) before sub-paragraph (i) insert— 15

“(ai) persons who are the subject of notices under section 4A(1) and 4B(1),”,

and

(b) in sub-paragraph (iia), for the words from “interim” to the end substitute “and

interim bankruptcy restrictions orders”.

3A In section 5 (sequestration of the estate of living or deceased debtor)— 20

(a) in subsection (2B)(c), after sub-paragraph (ib), insert “or”, and

(b) in subsection (4A)(a), for “section 33(1) of this Act” substitute “any provision of

this or any other enactment”.

4 In section 5B (certificate for sequestration), in each of subsections (1), (3) and (5)(b), for

“an authorised person”, wherever it occurs, substitute “a money adviser”. 25

5A In section 6 (sequestration of other estates)—

(a) in subsection (2), after paragraph (a) insert—

“(aa) a limited liability partnership,”,

(b) before paragraph (a) of subsection (4) insert—

“(za) by debtor application made by the partnership where the partnership is 30

apparently insolvent,”,

(c) after subsection (4) insert—

“(4A) For the purposes of an application under subsection (4)(za), section 7(3)(a) is

to be read as if—

(a) the word “either” were omitted, and 35

(b) the words “or if any of the partners is apparently insolvent for a debt of

the partnership” were omitted.”,



(d) in subsection (8), after “(8A)” insert “(but not (9) or (10))”.

6 In section 7 (meaning of “apparent insolvency”)—

(a) in subsection (1), for paragraph (c), substitute—

“(c) the debtor grants a trust deed,

(ca) following the service on the debtor of a duly executed charge for 5

payment of a debt, the days of charge expire without payment (unless the

circumstances are shown to be such as are mentioned in subsection

(1A)),

(cb) a decree of adjudication of any part of the debtor’s estate is granted,

either for payment or in security (unless the circumstances are shown to 10

be such as are mentioned in subsection (1A)),

(cc) a debt constituted by a decree or document of debt (as defined in section

10 of the Debt Arrangement and Attachment (Scotland) Act 2002) is

being paid by the debtor under a debt payment programme under Part 1

of that Act and the programme is revoked (unless the circumstances are 15

shown to be such as are mentioned in subsection (1A)),”,


“(1A) The circumstances are—

(a) that, at the time of the occurrence, the debtor was able and willing to pay

the debtor’s debts as they became due, or 20

(b) that, but for the debtor’s property being affected by a restraint order or

being subject to a confiscation order or charging order, the debtor would

at that time have been able to pay those debts as they became due.”, and

(c) in subsection (3), in each of paragraphs (a) and (b), after “constituted” insert “(or,

as the case may be, again constituted)”. 25

7 In section 9(1A) (jurisdiction), after “living” insert “or deceased”.

8 In section 12 (when sequestration is awarded)—

(a) in subsection (1), after “made” insert “and sections 11A and 11B do not apply”,

and

(b) in subsection (4)(b), after “deed” insert “and sequestration is awarded”. 30

9 In section 13B (termination of Accountant in Bankruptcy’s functions as interim trustee

where not appointed as trustee)—

(a) in subsection (4)(b), for “claim” substitute “determination”, and

(b) in subsection (5), for paragraph (c) substitute—

“(c) that, in the circumstances mentioned in subsection (9), the Accountant in 35

Bankruptcy is discharged from any liability incurred while acting as

interim trustee.”.

10 In section 14(1) (registration of warrant or determination of debtor application: duties of

sheriff clerk)—

(a) for “date of sequestration” substitute “sheriff grants warrant under section 12(2)”, 40

and

(b) for “section 12(2) of this Act” substitute “that section”.



10A In section 14(3) (expiry of effect of inhibition), after paragraph (a) insert—

“(ab) on the recording under section 10A(3D), 17E(5) or 17F(11) of a certified

copy of a decision,”.

11 In section 15(4), for “16 and 17” substitute “10A(3A), 16, 17, 17E and 17F”.

12 In section 17 (recall of sequestration)— 5

(a) in subsection (2), after “more” insert “other”,

(b) in subsection (3), in paragraph (a), for “the”, where it third occurs, substitute

“any”, and

(c) in subsection (8)(b), in sub-paragraph (ii), for “the trustee (if any)” substitute “if

the Accountant in Bankruptcy is not the trustee in the sequestration, the trustee in 10

the sequestration”.

13 In section 20(1) (trustee’s duties on receipt of list of assets and liabilities)—

(a) for the words from “shall”, where it second occurs, to “whether” substitute “if”,

and

(b) at the end add “the trustee is so to indicate in the statement of the debtor’s affairs”. 15

14 In section 23(3) (proceedings at statutory meeting before trustee vote), for paragraph (c)

substitute—

“(c) after considering any such representations as are mentioned in paragraph

(b), shall, if in the interim trustee’s opinion the debtor’s assets are

unlikely to be sufficient to pay any dividend whatsoever in respect of the 20

debts mentioned in paragraphs (e) to (h) of section 51(1), so indicate,”.

15 In section 26(1) (provisions relating to termination of original trustee’s functions), for

the words “prepared under section 23(3)(d)” substitute “of the debtor’s affairs prepared

under section 20(1) (as revised under section 23(3)(d) if so revised)”.

16 In section 27(4) (discharge of original trustee: appeal etc.) for “under”, where it first 25

occurs, substitute “by virtue of”.

17 In section 29(8) (removal of trustee and trustee not acting: application of certain

provisions of section 28), for “(7)” substitute “(8)”.

18 In section 32 (vesting of estate of debtor after sequestration)—

(a) in subsection (1), for “subsections (2) and (4B)” substitute “sections 32A to 32G”, 30

and

(b) in subsection (5), after “54” insert “, 54A or 54C”.

19 In section 39A(3) (debtor’s home ceasing to form part of sequestrated estate:

exceptions), in paragraph (d), for the words from “registers” to “title” substitute

“completes title in the Land Register of Scotland or, as the case may be, the Register of 35

Sasines”.

19A In section 43A(1) (debtor’s requirement to give account of affairs), for paragraph (b)

substitute—

“(b) is subject to a debtor contribution order.”.

20 In section 47 of the 1985 Act (conduct of examination), for subsection (6) substitute— 40

“(6) The trustee must send a copy of the record of the examination to the




21 In section 48 of the 1985 Act (submission of claims to trustee), for subsection (7)(b)

substitute—

“(b) in subsection (7) the words “and keep a record of it stating the date when

it was produced to him” were repealed.”.

21A In section 50(1) (entitlement to vote and draw a dividend), for the words “on appeal 5

under subsection (6) of” substitute “on review or appeal under”.

21B In section 52(7) (set aside of certain estate where appeal)—

(a) for the words “an appeal is taken under section 49(6)(b)” substitute “a review or

appeal is made under section 49”, and

(b) for “appeal”, where it appears in both subsequent places, substitute “review or 10

appeal”.

22 In section 53 (procedure after end of accounting period)—

(a) in subsection (6), for “such an appeal” substitute “an appeal against a

determination under paragraph (a) or, as the case may be, an appeal under

paragraph (b)”, and 15

(b) in subsection (6A), for “(6)” substitute “(6)(a) or (b)”.

23 The title of section 55 becomes “Effect of discharge under section 54, 54A or 54C”.

24 In section 55—

(a) in subsection (1), after “54” insert “, 54A or 54C”,

(b) in subsection (2)— 20

(i) in paragraph (aa), for “district court” substitute “justice of the peace court

(or a district court)”, and

(ii) in paragraph (b), for “section 1(3) of the Bail etc. (Scotland) Act 1980”

substitute “section 24(6) of the Criminal Procedure (Scotland) Act 1995

(c.46)”, and 25

(c) in subsection (3), after “54” insert “, 54A or 54C”.

25 In section 56J (effect of recall of sequestration)—


(i) in paragraph (a), for the words from “interim” to “undertaking” substitute

“or interim bankruptcy restrictions order”, and 30

(ii) after paragraph (a), insert “and”, and

(b) in subsection (2), for the words from “interim” to “undertaking” substitute “or

interim bankruptcy restrictions order”.

26 In section 58 (unclaimed dividends), for “57(1)(a)”, in both places where it occurs,

substitute “57(1B)”. 35

26A In section 58A(4) (documents sent on discharge of Accountant in Bankruptcy), in

paragraph (a) for “the determination mentioned in subsection (2)(c) above” substitute “a

determination of the Accountant in Bankruptcy’s fees and outlays calculated in

accordance with regulations made under section 69A”.

27 In section 60B(2) (trustee’s duty to give notice etc. to member State liquidator), after 40

“shall” insert “also”.



28 In section 72 (regulations)—


“(1A) Regulations under this Act may make different provision for different cases or

classes of case.”, and

(b) in subsection (3)(a)— 5

(i) after sub-paragraph (i) insert—

“(ia) section 5(2ZC),

(ib) section 5(2ZD),”,

(ii) after sub-paragraph (iia) insert—

“(iib) section 5C(2)(b), 10

(iic) section 5D(1),

(iid) section 32D(7),” and

(iii) after sub-paragraph (iii), insert—

“(iv) section 71C(1) which contain provisions which add to, replace or

omit any part of the text of an Act or an Act of the Scottish 15

Parliament,

“(v) paragraph 2(7) of Schedule A1,”.

29 In section 73(1) (interpretation)—

(a) in the definition of “commissioner”, for “30(1)” substitute “4”,

(b) after the definition of “commissioner”, insert— 20

““common financial tool” has the meaning given by section 5D(1),”,

(c) after the definition of “creditor” insert—

““DAS register” has the meaning given by section 4A(4)(b),”,

(d) in the definition of “debtor application”, after “5(2)(a)” insert “or (3)(a)”,

(e) after the definition of “debtor application” insert— 25

““debtor contribution order” has the meaning given by section 32A(1),

““debtor’s contribution” has the meaning given by section 5D(1),”,

(f) after the definition of “member State liquidator” insert—

““money adviser” has the meaning given by section 5C(2),”,

(g) for the definition of “qualified to act as an insolvency practitioner” (and the 30

proviso to that definition) substitute—

““qualified to act as an insolvency practitioner” is to be construed in

accordance with section 390 of the Insolvency Act 1986,”, and

(h) after the definition of “statement of assets and liabilities” insert—

““statement of undertakings” means the statement of debtor undertakings 35

sent to the debtor under section 2(8) or, in the case of a debtor

application, given by the debtor when making the application,”.


Schedule 4—Repeals

30 In Schedule 1 (determination of amount of creditor’s claim), in paragraph 2(2), after

“case”” insert “, where they first occur”.

31 In Part 2 of Schedule 7 (re-enactment of certain provisions of Bankruptcy (Scotland)

Act 1913), in paragraph 24(3), for the words from “the”, where it third occurs, to

“meantime” substitute “in the meantime the first or any subsequent arrester obtains”. 5

Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17)

31A In section 62 of the Debt Arrangement and Attachment (Scotland) Act 2002 (regulations

and orders)—

(a) in subsection (3), for “the first regulations made under section 7 above” substitute

“any regulations containing provision of the kind mentioned in section 7(2)(bd), 10

any regulations containing provision of the kind mentioned in section 7(2)(ub)”,

and

(b) in subsection (4), for “the first regulations made under section 7 above” substitute

“any regulations containing provision of the kind mentioned in section 7(2)(bd),

any regulations containing provision of the kind mentioned in section 7(2)(ub)”. 15

Fire (Scotland) Act 2005 (asp 5)

32 In paragraph 5(2)(d) of schedule 1A to the Fire (Scotland) Act 2005, for “either of those

Acts” substitute “paragraph 7 of Schedule 4A to the Insolvency Act 1986”.

Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3)

33 In schedule 6 (repeals), in the entry relating to section 37(8) of the 1985 Act, for 20

“second” substitute “third”.

Housing (Scotland) Act 2010 (asp 17)

34 In section 165 (interpretation), in the definition of “undischarged bankrupt”, in

paragraph (c)(ii), for “either of those Acts” substitute “paragraph 7 of Schedule 4A to

the Insolvency Act 1986”. 25


REPEALS

Enactment Extent of repeal

30

35

Local Government (Scotland) Act

1973 (c.65)

Bankruptcy (Scotland) Act 1985 (c.

66)

In section 31(3B), paragraph (b).

Section 2(1C).

In section 5, in subsection (2B)(c), the word “or”

immediately after sub-paragraph (i) and sub-

paragraph (ia); in subsection (4B), paragraph (b)

and the word “and” immediately preceding it; and

subsection (4C).

Section 5A.




5

10

15

20

25

30

35

40

45

50

In section 5B, subsection (4); and, in subsection

(5), paragraph (a).

In section 5B(5), paragraph (d).

In section 8, in subsection (3)(a), sub-paragraph

(i); and subsection (4).

In section 10(7), the words “a bankruptcy order

under the Bankruptcy Act 1914 (c.59) or”.

In section 12(3A)(b), the words “, or gives or

shows that there is sufficient security for the

payment of”.

In section 13A, in subsection (5)(d), the words “,

who shall insert them in the sederunt book”; and

subsection (6).

Section 13B(6).

In section 14(3), in paragraph (a) the words “, or

by virtue of paragraph 11 of Schedule 4 to,”; and

paragraph (aa).>

In section 17(8)(b)(ii), the words “who shall insert

it in the sederunt book”.

In section 26, in subsection (3)(b)(ii), the words “,

who shall insert the copies in the sederunt book”;

and subsection (5).

Section 26A(8).

In section 27, in subsection (2)(b), the words “for

insertion in the sederunt book”; and subsection

(6).

Section 32(2) to (4L).

In section 32(6), the words “or interest”.

Section 32(9)(b)(iii).


Section 34(9).

Section 35(3).


Section 36(7).

In section 38(1)(b), the words “which he shall

record in the sederunt book”.

In section 39A(6), in paragraph (b), the words “or

the Accountant in Bankruptcy”.

In section 47(5), the words “and shall be inserted

in the sederunt book”.

In section 49(5), the words “in the sederunt book”.

In section 52(2A), the words “and shall be

recorded in the sederunt book by the trustee”.

Section 53(10).

In section 55(3), paragraph (a) and the word “or”

immediately following it.

Section 56H.

In section 56J(1), paragraph (c) and the word

“and” immediately preceding it.

Section 58A(2) and (8).

In section 60, in subsection (1), paragraph (b) and




5

10

15

20

the word “or” immediately preceding it.

Section 63(4).

Section 65(3).

In section 71B(8), in the definition of “bankruptcy

restrictions order”, paragraph (a).

In section 72, in subsection (1), the words from

“and” to the end; and, in subsection (3)(a), sub-

paragraph (ii).

In section 73(1), the definition of “bankruptcy

restrictions undertaking”.

In section 74(4), paragraph (b) and the word “and”

immediately preceding it.

In Schedule 1, paragraph 4 and the italic cross-

heading immediately preceding it.

In Schedule 5, in paragraph 4, sub-paragraph (c);

and, in paragraph 5(2), paragraph (aa).

In Schedule 6, in paragraph 7(3), the words “and

he shall insert the minutes of the meeting in the

sederunt book”; in paragraph 20, the words “and

shall insert a record of the deliberations of the

commissioners in the sederunt book”; in paragraph

21, the words “for insertion in the sederunt book

and shall authenticate the insertion when made”;

and in paragraph 23, the words “; and that minute

shall be inserted by the permanent trustee in the

sederunt book”.

25

Insolvency Act 1986 (c.45)

In section 51(6), in the definition of “bankruptcy

restrictions order”, paragraph (b).

Bankruptcy (Scotland) Act 1993

(c.6)

In Schedule 1, paragraph 31 and the italic cross-

heading immediately preceding it.

30

35

Bankruptcy and Diligence etc.

(Scotland) Act 2007 (asp 3)

Home Owner and Debtor Protection

(Scotland) Act 2010 (asp 6)

In section 15, in subsection (1), paragraph (b); and

subsection (2).

Section 21 and the italic cross-heading

immediately preceding it.

In section 62(2), paragraph (d).

Section 13(2).


Bankruptcy and Debt Advice (Scotland) Bill [AS PASSED]

An Act of the Scottish Parliament to amend the Bankruptcy (Scotland) Act 1985; and for

connected purposes.

Introduced by: John Swinney

Supported by: Fergus Ewing

On: 11 June 2013

Bill type: Government Bill

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